可能!!

as long as you can watch the AVI movie on your PC, you can convert it into DVD format. The best software I know is TMPGenc, this is a free software but much much better than any commercial softwares!

http://www.tmpgenc.net/e_main.html

but as the other friend said, 沒那個必要! there're many DVD player support DIVX/XVID, such as SHINCO, and not expensive at all. you only need to copy the AVI file into CD-R or CDRW or DVD writable media, and play it with the player! that's easy.
check out your electronic store, don't forget to bring along your favourite DIVX movie disk to test out.