If you're using Windows 7, Windows DVD Maker is included with the OS (and as a d/l with Vista/XP), and with k-lite installed it should find the codecs for dealing with AVI. That, if nothing else, should give you some options on compression/quality before a burn.
I use AppGeeker DVD Creator, which should work fine for you, doing AVI conversion and burning to DVD all in one place.
http://www.appgeeker.com/convert/burn-avi-to-dvd.html
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