Avi --> mpg

[XcalibuR]

DVD2SVCD in combination with Cinemacraft Encoder 2.50

or Tmpgenc

jep - best combination with CCE 2.50
TMPGEnc is free, but CCE is thrice as fast and gives much better quality (2-pass encoding with an Athlon XP 1800+ takes about 5 hours for 100min of AVI, including Audio etc.)