Hi,
I think you can try one of the sharewares available. Try to dowload the ContextConvert PRO from
www.contextconvert.com and it will help you to convert the files to various formats.
If you convert an avi format to dvd format you will not get the same quality as it is compressed and the file will be bigger. It will be better to watch in avi format in Windows Media Player or Real Player but you have to download the codecs. You can download the codecs from the internet free. Open Real Player or Media Player and try to open the avi file. You will be asked to download the codecs and if you are connected to internet you will be automatically prompted to download the codecs. Otherwise go to
www.download.com and search for the DIVX CODECS.
I tried it and it was successful and now I am watching all the movies in avi format with original quality.