There is no AVI format. AVI is a file extension and it usually means it’s a video file using PCM, MP3, Ogg Vorbis, Mp4, Divx or the Xvid codec for its sound and images.
The Matroska container format is an excellent system. Unfortunately there isn’t a single standalone dvd player that supports it, yet they support Divx and Xvid usually.
If you have a personal computer connected to your television or am happy to watch the movie on your computer then all you need is a good video player with the apppropriate codecs. For instance: VLC player
If you still want to play it on your standalone player (xbox 360, dvd player, etc) you need to convert it to a codec system that your standalone dvd player understands.
Mind you that MKV is a container format, so the best way to convert the file is to first actually check what kind of files are inside the container. You can do this by using tools like mkvtoolnix or MkvExtractGUI.
- Where do i want to play this movie? Standalone or pc?
- What codecs does the standalone device understand?
- What is actually inside the container file?
- Do i really need to convert it or is extraction more than sufficient?
If you want to use the standard dvd format (dvd video) you can use ConvertXToDVD to transcode (convert) your files to a nice dvd video. This will result in quality loss
If you want to use another format like divx or xvid then you need to convert the files extracted from the container to the appropriate format. This will usually result in quality loss because of the coding algorithm and your personal preferences.
Because the matroska container can be filled with a lot of different files (like multiple video, multiple subtitling, multiple audio in different formats) most one-on-one converters/transcoders cannot deal with the matroska format correctly. If this is the case with your converter as well it would be wise to edit the matroska container to a single video, a single audio and a single subtitle file. You can do this by using tools like mkvtoolnix or MkvExtractGUI. Even then it’s possible your converter can’t deal with the subtitling.
Note: There is no way to magically enhance quality if one of your devices forces you to alter the format. For instance: If the file is a 16:9 video file and you display it at a 4:3 television, guess what happens? If the audio is stereo it doesn’t suddenly enhance itself to dolby 5.1 surround. If it’s 27.9 frames per second, displaying it at 25 frames per second can give weird results.