Honestly I don't really do these kinds of conversions, so I'm just speaking from general knowledge, I don't have specific experience with this program. What video I have downloaded I rarely do any conversion to - I have a DVD player that will play some MPEG4/DIVX/XVID files. So many new and better programs have been introduced even in the past year or two since I can recall having done an AVI to DVD conversion. I'll check what I have on my computer if I have something that might work well. The last couple of times I've looked into new video encoders, I tried out many different ones and settled on one or two that I liked, but the last time I did this it was for a DVD to AVI conversion, not AVI to DVD.
P.S. - I have used AVI2DVD but it's been awhile like I said, give that a try.