PS2divx doesnt work

www.ps2divx.com I tried this method but I get black screen
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drag test.avi
drag MPLAYER.ELF
drag CDVD.IRX
drag SYSTEM
Create CD -> test.iso

Load up Nero -> burn image -> test.iso -> successfuly burned @ 12x
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Load up PS2, the part where black background and white PS2 didn't fully show up... then it goes on, the CD loads and that's all, I tried pressing everything, nothing happens... I read the DISC on PC, all files are there

PS2 -> mod-chipped. I can play every DVD disc, and games

what's wrong?