The AVI will burn onto a DVD, but will only be playable in a computer - not on a standalone DVD player.
To burn in a compliant format for most DVD players the AVI needs to be converted into an MPEG file which then needs to be authored into the appropriate files and directories.
The software I use is
TMPGEnc for the conversion and
TMPGEnc DVD Author to create the actual DVD - this will allow you to create menus and chapters etc.
Other tools are available, but I find these fairly straightforward