While I can't remember the exact filename, I feel pretty confident that a DVD is out of the same file. This was not too new or old.... Pretty much there is no such thing as too new as the group will need a source to make the encode.
I very much doubt he is using the right settings as I have never heard of anyone using fit to disc and the finished result not fitting. Either that or the DVD-r disc being used sucks.
A 250GB download limit is quite nice. Lots of people are more unfortunate.
I can't remember the last time I transcoded .avi to DVD to be honest. I just connect my Laptop to the TV and Stereo and viola