I moved your latest post into its own thread, since your question is not at all related to the previous thread.
Which type of video you convert to depends entirely on the capabilities of your equipment. If you are playing the files from a dvd player, I would suggest using dvd-video, unless your player also has support for avi files . In that case, you could also use divx or xvid codecs in an avi container.
You can convert .wmv to dvd video in DVDFlick, or AVStoDVD. For wmv to avi, you might use SUPER, Xvid4PSP or AviDemux.