The top brand burner apps will convert avi to mpeg2 for svcd & dvd before the burning process. Examples are Roxio's Easy CD/DVD Creator & the most recent version of Nero. If you want separate apps that can do it, well suggestions depend upon your OS platform. Most video editor apps will/should have this ability. Else you can purchase the MPeg2 codec separately such as from Apple's QuickTime. Somebody better experienced with windows video might come up with more ideas. You can also check out these sites for ideas or questions: 1.
http://www.videohelp.com/ & also 2.
http://forum.dvd-guides.com/