I have been using MENCODER, the freeware encoder listed in other posts, on many different projects. I have done files on my PC, DVD's, and even episodic DVD's (a bit harder!). It really isn't very difficult.
For those of you who have been asking for an example, I posted a video my company, Living Scrapbooks, did for a recent tribute at a memorial service. You can find New Page 1
and right click on the link. It is 17MB and 7:52 long. Enjoy!