DvdFab works well. Nero works well. If you just want to compile working dvd's with a simple timelined menu, possible subs, etc, I'd go with dvdfab. I think I put a 3hr movie on a 4.7gb disc once and it came out well (LOTR). If you can burn to double layer discs which then would hold larger longer files, you could seemingly get better looking dvd's (using highest longest settings of course). I've used CinemaCraftEncoder, which is for duping, and the results look better than the original when you have 5, 6, even 8 pass encodes.
Handbrake was just updated but it is not simply click and go like dvdfab or nero (slightly more complex), but it will give the best output if that's your thing. It's free. Handbrake's version 0.99 could import avi's.
I use mostly MKVToolnix now for files only. It can take pretty much any video file and create either an mkv or mp4 (just rename output ext). I like makemkv as well. It burns an iso/disc straight to file with chapters and subs. There are some open source stuff but handbrake's probably the best for free. You're better of getting an unlocked dvd player as they are cheap and have a usb port which will accept any fat32 formatted usb and simply copy the files. Forget about burning squat. As long as the file is less than fat32 formatting you're good to go.
My buddies $1600 LG smart tv accepts mkv's as input to the usb ports but still won't accept anything other than fat32 formatting. Most tv's with a usb port will accept mp4's, avi's and whatnot, but not mkv's. Lame as that just a tiny chip with code on it.
