It's good that you took a look at the video file first. Many files are not what they claim to be, and many files are simply not worthy of transferring to disc.
Converting movies from AVI to DVD or VCD can be quite time consuming...I also use TMPGENC; although I use virtual dub to rip the audio separately and then remux the audio and video with TMPGENC DVD Author.
At Wal-Mart, you can get a DVD player that will play AVI movies (DivX format, the most common type) for $37. No conversion necessary! Just burn the AVIs to DVDR and go! This way, you can fit 5 or 6 full length movies on one disc and not have to worry about losing quality during conversion.
Good Luck!
P.S. Check this website out (especially the guides):
http://afterdawn.com