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generally, and i'm making an assumption, when someone writes a question like this they are wondering how people watch movies?
Most people will not re-encode or compress movies they've downloaded, we watch them either via tv-out on a pc, or more often these days via a standalone. The best standalone is a modified xbox which can play everything, but there's a host of sub £50 players you can buy. You then just burn to a disc the avis without compressing, and you choose the file you want to play in the player.
For burning, nero is popular but record now etc. are just as good. Infact in my experience record now is probably a better burn engine but not really as many options. For burning isos, use dvddecrypter or alcohol 120%
Now for compression, if you mean DVD to mpeg4, I use gknot and as far as codec goes, i prefer Xvid, but each one has its own strength.
If you mean whats the best for converting from mepg4 and downgrading to mpeg2, none - its a lossy process and you loose a lot of quality. However, if you simply must do this, I would suggest something like CCE.
However, for burning an avi that's been downloaded, we don't do any converting into retail like dvds, we put 6 avi files / movies on a disc burnt as a datacd (say in nero in iso mode) and then pop this in a player and select the movie we want to watch or
If you intend to watch and download a lot, then i would seriously invest in an xbox.
If you just meant, what do you use to burn avis, nero is probably the most popular and ripping a dvd to avi, i'd say gknot using xvid.
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