The AVI looks like perfect quality because it's in a compressed state. Just so happens when Santa decompresses the movie it goes back to it's original state. Try creating the dvd in the same size settings the AVI is currently in. Your tv screen will be mostly letter box and stretched. I had the same problem a couple days ago, I came upon a 2 part AVI and tried creating the DVD. Talk about crapola. Bad download. Looking for a better one. I came across the american pie quadrilogy, all seperate avi's, converted them to DVD and they all looked fantastic.
