If you just want simple chapter points then a very easy way to do it is using DVDAuthorGUI freeware. You need to convert the .AVI to separate video and audio files in DVD format. TMPGEnc Plus with do this. You can download the trial version:
http://www.pegasys-inc.com/en/download/tp.html
If you search for DVDAuthorGUI Guide you should find a guide to authoring DVDs with simple menus and chapters.
If you want to do something really sophisticated then ask about the high end tools. I try to do things in an inexpensive fashion as I mostly convert just to watch on my stand-alone DVD player and then erase the disc. :)
Any chance you could tell your steps to making a dvd from an avi/mpeg(all format file) video?
I've used various programs some give out "not in sync" video/audio, some skip chapers and scenes, some programs even convert then when the dvd is playin it freezes upon a certain point in the dvd footage.
I just want to be able to stick a video file into a program, maybe add chapters (not too bothered about the menu side of things) then let it get converted to dvd format, finally burn it to dvd..
Then relax and watch it without signs of audio/video out to sync or skips inside the video!
Thanks a lot for your help mate, i have now tried super dvd creator although only take 1hr always doesnt work (sync/skips) Nero express takes too long and sometimes files wont import.. AVIDivX to DVD was lookin good i could add chapters but in the end didnt even convert at all!
The easiest I know to use is VSO DivXtoDVD freeware. It will convert several file formats to DVD and create chapter points every 5 minutes I think. Trouble comes when the source and output video are different framerates. Say you have a DivX video with a framerate of 25 fps. When you put it through a converter to get an NTSC video, the framerate will likely be 29.97. So the audio will be out of sync. I don't know of any "one click" solution but I don't want to spend $500 for video software either. So some may be out there. All I know is if you look for threads here "PAL TO NTSC" you'll get more info why you get audio out of sync and how to fix it.
If you insist on a "one click" solution then you should prolly ask around on some of the specific software forums to get other's experiences on which programs will actually work with what input file formats and framerates.
If PM doesn't work I think there's an option somewhere to send a blind email. Although I don't know why you feel compelled. Home-made Christmas cards or? ... :)