Well, I finally found a way to do this using toast 6. This is quite an upgrade for toast. I highly recomend it. All you have to do is drag the avi file into toast and save as a dvd disc image. You can then mount the image and use dvd2oneX to fit it to a single dvd-r. The only problem is that encoding take a long time (14hrs for a 2.5hr movie on a 867 quicksilver).