Depending on what exactly the AVI file is made of (codecs for video and audio), you might find Toast able to create a VCD or even DVD. You can also search versiontracker.com for converter tools. Also look at what iDVD can import, you might be able to convert your AVI file into something iDVD can read...
(Btw.: I've changed your thread title, as it was against board rules. Make sure you read them before finding yourself banned before you even became a real member of this forum.) ;-)