Can i convert without any loss from MPEG2 to DIVX, and what is best to use?

My video's are in the following format:

Video:
* format = MPEG-2
* chroma format 4:2:0
* width = 720
* height = 576
* frame rate = 25.0 frame/s
* bit rate = 6553600 bit/s

Audio:
* format = LayerII
* bit rate = 224000 bit/s
* sampling rate = 44100 Hz
* mode = stereo

All of theme are captures from VSH (PAL) tapes, so maybe a little loss will have no effect on the output.

I intend to use AVI's for editing software like Studio 7, cause it cannot read MPEG2 files.

Or, does anyone recommend to use it in an good editor which can read MPEG2 files?