You may want to test that MFS_FTP is running by using an FTP client to connect to your TiVo. I use FileZilla and the address is ftp://tivo:3105/, there should also be a log file called 3105.log in your MFS_FTP directory that may give you some pointers... I think you may be trying to start the application while it is still running (giving you the "port already in use" error) - you may like to read the documentation for the various ways of shutting down the service. If you are having trouble you may wish to check the MFS_FTP forums as it could be that somebody else has also run into the same problem.

The easiest way is follow the guide EtiVo DivX installation guide here.

VSplit can be got from the distribution found in this post.

I have only played with EtiVo occasionally... a friend was having a few problems with it so I had a look (which resulted in the patch file being created)... and to test the setup I converted a few shows. Definitely not a regular user.