It's not clear from your question exactly what it is that you're trying to do. If you simply want to copy the .AVI file to a DVD (so that the DVD is used for storage and you can play it on your PC) then all you need to do is to follow the instructions for your burning software. (If you're having problems with this, please post again and tell us which software you're using).
If, on the other hand, you're trying to make a DVD which will play on a DVD player (rather than via your PC), you need to convert the file to a suitable format before burning it. This software seems to be the sort of thing you'll need:
http://www.download.com/Allok-AVI-to-DVD-SVCD- VCD-Converter/3000-7970_4-10588372.html?tag=ls t-0-3
Chris