I have been using this freeware called Avi2Dvd to convert AVI media files to DVD & VCDs. It uses other freeware applications to do what it does & provides a easy to use interface for conversions.
Neat one to have on your application list if you don’t want to get your hands too dirty with format conversions.
http://www.trustfm.net/divx/SoftwareAvi2Dvd.php?b2=1