Try avi converter
Have just upgraded to this (cost £11 in sterling $22 US), Ultra AVI Converter helps you convert AVI, DivX, Xvid files to AVI, DivX, Xvid, MPEG1, MPEG2, VCD, SVCD, DVD, WMV formats.
Integrated High-speed MPEG encoder which let you make DVD-Video files(VIDEO_TS, AUDIO_TS) and VCD/SVCD image(*.bin,*.cue), so you can burn VCD/SVCD/DVD disc easily by using third-party buring tools. (so you dont have to fiddle about with the codecs, which gave me a massive headache before finding this.)
Before I used this, I had this freeware
which was ok, but took a good few hours to convert a film, also it doesnt like brackets, punctuation etc in the titles and will crash halfway through if you dont change titles properly.
Personally, I found the first option best out of the 2, hope this helps, Emz xx