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Don't listen to these guys. There is a freeware converter package called Avi2DVD and I absolutely love each byte of it. Best of all you don't have to design a pointless menu, you can make it just start with the movie.
http://www.trustfm.net/divx/SoftwareAvi2Dvd.html
http://www.trustfm.net/divx/SoftwareAvi2Dvd.html