If AFreeCodecVT also had problems reading the file the first time as well as DVDSanta can't burn it, I think the file is the problem. It probably has some sort of glitch in the coding. FourCC X-viD is a common avi-format and I don't see why there should be any problem at all for AFCVT to determine videocodec

You could try some other software. I don't think that Nero has any trialversion for the 7th edition but you might find one for Nero 6. You could also try the WinAVI Video Converter to see if you can convert to DVD with that.

note: Both the programs I mentioned you will have to pay for to get full use of. WinAVI puts a watermark on the finished movie in trial version and Nero (if I remember correctly) has a 1 month limit on the trial version

P.S. If you really want this movie it would be alot quicker to just go out and buy it instead of spending even more money on software. Also I'm sure the quality would be better