Have a look at this link:
and have also a look at this page ( in www.videohelp.com )
Your main problems are - space and player compatibility
AVI - Mpeg4 or DviX can be burnt to a CD.
Also you can convert it to VCD, SVCD or DVD format - even a DVD can be burnt to a CDr, if the total size allows it.
Burning a DVD to a CD produces a format that nobody talks about today but was referred before DVD burners became so popular - MiniDVD
Some years ago, I bouht a home player that could do it - but there were only a few around. Using the PC, PowerDVD and winDVD could do it.
I used to burn these miniDVDs for home video (so short runs up to 15 to 18 minutes) using an Ulead so called DVD plugin, because by the time video editors would not include such a thing, but as it used Mpeg2 the quality was the same as the DVD.
By the same time it was usual that some people would "backup" to Cd using DivX (it should be version 3 by the time).
So, have a look at the guides and see if you find something that suits you, but at the price of blank DVDs the appeal doesn't seem to be the same anymore, and you will not get accrued compatibility using a CD, probably.