What you're looking at, is simply put - Building a Dvd.
It asks you to select files from folders that you'd like to put on a dvd, then when you click the button, it will start to convert them over to dvd from avi/mpeg/etc . If you download them from torrentspy, most of what is torrented there are avi files.
Also - I have found that dvd-r does not "compute" with this program. If you have the capability to convert them onto dvd+r, don't waste your time with cheap dvds. Sony/Verbatim are the best quality and a few cents higher than Memorex/etc dvds.
After you convert, an easy program to use in compliance with this is Nero.