The program i use to convert my avi's mpeg etc is Canopus ProCoder. You can download from p2p program, also get mpeg2 plugin for it. This is the easiest way to encode to dvd svcd vcd.Then use TMPGEnc DVD Athour to make vob files. Then burn using nero 6.
Nero Vision works well. fast and easy. I use it all the time. When I know how to do better I will not keep to my self