I use Nero to do this... select VCD as your option for creating a new CD and then drop the AVI/MPG files you want on the VCD. It will do the conversions and file structure buildng for you.
It takes a bit to do, I usually do it before I go to bed because I don't want to wait for the conversion process.
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I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.
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