The Best software available out there that can transform avi into VCD ( mpeg1 ), SVCD ( mpeg2 ) , DVD ( vob ) is TMPGENC.
It's not that difficult to use it and it gets the job done in a TOP quality but I gotta tell you it takes a while to convert...
Just search it on google and download it ( it's small ) and It will work just fine !
I dont know how many episodes are gonna fit in one DVD but I would save'em on DVD as avi-s and if you really want to see em on your DVD player try using SVCD option which can save about 7 hours of movie on a DVD and the quality of sound and Image is GREAT!
Try it and replay here your oppinions about it.
PS the url to get it is
Good LUCK !!