You should have looked at the many threads allready explaining this, but I'll help you out.
You are looking for mepg-1 which is VCD format. There are many different softwares out there but the best is TMPGEnc. You can download it as a trial version, because it's not a freeware. If you do obtain the software you just go into project wizard and select VCD and either NTSC for America or PAL for Europe. After it's encoded you can use Mpeg tools in file to split it to the appropiate length.
By the way PIRACY IS NOT ALLOWED ON THIS FORUM. YOU WILL BE BANNED.
When posting on this site do NOT say that you have downloaded movies.
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Your Files have to be converted to Mpeg1 VCD Format...Nero will encode your AVI file to this format before burning to CD-R but the Quality will be Horrorable because Nero"s encoder is terrorable....
A Good Mpeg VCD encoder is "Tmpgenc" (TMPGEnc.net" class="korostus" target="_blank">http://www.TMPGEnc.net) ,But to successfully make a High Quality VCD that Plays perfectly and is of High Quality you are going to have to do some learning before you will be able to achieve the Best result...Encodeing AVI to Mpeg VCD and have it Play perfectly isn"t a simple One click opperation, you have to know everything about your AVI file like Frame rate, resolution ,Audio format, Video Format, aspect ratio..and depending on these Things would determine how you would go about encodeing your File to Mpeg1/VCD...There are Tutorials on this site that will be helpfull and guides over at www.dvdrhelp.com ....Cheers