Any DVD authoring program would work. I use Sonic MyDVD and ULead MovieFactory. Both can convert an MPEG file to DVD-video format. (Between the two, I prefer MovieFactory, but they're both good.)
I belive they will also work with AVIs, but I haven't tried that.
If you have Nero 6, it comes with Nero Vision Express. While, not the best, this program will also do the job.
I used to be indecisive, but now I'm not so sure...