The FilmMachine includes all the software necessary to convert an .AVI video to DVD/SVCD. The only thing you need apart from The FilmMachine is Cinema Craft Encoder SP 2.5, 2.66, 2.67, or Canopus Procoder, which you must install first to codify the videos.
Windows Movie Maker 2.0.33 ( 2003-05-18 ) It is a free, easy and complete video editor that allows you to create your own movies using different sequences