AVI to Divx

[zp18zp18]

I downloaded about 7 gb of one show for one season and have been writing to 4.7GB DVD using Nerovision. Nerovision doubles the size of the file and one 22 episode season ends up 4 DVD's.
I thought that DVD Shrink would do the job but it doesn't recognize AVI files.

I like the menu options for Nerovision but that is all that I am getting from that.

I downloaded handbrake and it converted the AVI file to about the same size of MP4 file but I can't seem to play it.
I also have a divx converter which runs ok and has about the same size divx as the avi.

I would appreciate any guidelines that would get me from AVI files to something that would fit the 7gb of avi files on a 4gb DVD with a menu.

TIA, GWB

[Chetwood]

Downloaded? Seriously? And what makes you think DVD Shrink would handle AVIs?