If you don't have TMPGEnc Plus then may I suggest the last freeware version of TMPGEnc, TMPGEnc 0.11.20.98-rel1, to support unlimited MPEG2 encoding. Its the best freeware MPEG2 encoder available, period. And as long as you have DGIndex and AviSynth installed and then it should be able to open .AVS files without any problems.