Opened dixvtodvd, selected the .avi file.
Choose "Force 16:9" and "Force NTSC" (obviously choose Pal if needed)
Clicked convert.
This left a VIDEO_TS folder.
At this point, I use DVDSkrink to burn it. I use Shrink because it's free, and it allows you to see a preview of what is being converted, so you can check the aspect ratio. Also, unlike just burning the VIDEO_TS folder to a dvd, dvd shrink will alert you if there is a problem in the folder or video files.