So I'm starting to Think I'm Helpless >_>

I understand that in order to Make a DVD movie there are steps to follow. Now I've used Youtube and Google and they tend to say the same thing I got here. soI feel like my problem is Simple? and I cant see it .

Tools: Nero Prem 7 , Windata DVD+ R ( Will buy Name band DVD's)

Project : Sleepless edit: No names or links to copyright material. Read the rules!!
Size: 1.37 GB
Type: .AVI (Video Clip)
Process: When I'm at the DVD- Video Menu sub screen I lower My Bit Rate to 1,691 ( the lowest it will let me go) the Resolution is set to 720 x 480 ( CCIR - 601 D1)
The Encoding Mode is at HQ (2 pass VBR) The Video Format MPEG-2 ( cant change)
The Audio Format Dolby Digital (AC-3) 2.0 .
Then there is a 4 to 5 hour Transcoding . where it tells me the file is still to big .
Now I don't under stand?

My next step is to get DVD-9 but I know you can burn to a DVD -5 Because I have tons of them that something else burnt but now that I have a Burner I'd like to do it Myself. Maybe I'm still missing a step . Forgive me for taking so long to figure this out and asking so much from you all . thank you .