complete newbie here :( ..PLZ help with multiple avi to dvd

ok basically, i burned an avi file onto dvd-r before (using Intervideo winDVD) but i realised i chose the wrong format, as the film started playing on the tv screen really narrow- i.e. the top and bottom seemed to squash the film!

so now i want to re-burn the film, but this time i want to add chapters, so its easy for my little sister to pick where she last watched from.
Ive cut the film into chapters (using a guide for VirtualDub, somewhere on here i think).
to do this, i noted the frames (using the shift button to find the frames) and then "home" and "end" for each chapter, saving as avi.

so now im left with 16 chapters, and ive downloaded the new nero trial version, as well as the TMPGEnc DVD Author 3 with DivX Authoring Trial Version and VSO DivxToDVD.
i feel im downloading too many programs though, and im just getting to grips with VirtualDub!

my questions are:

1) if i use nero/intervideo winDVD to burn the movie, will all the chapters play together (as a single movie) or will my sister have to play each chapter singularly?
(if so, do i need to stick all the chapters back again?!?)

2) i want to burn more than one movie on this dvd+r (also cut in chapters- 11 in all!), so will the menu be really complicated/will it work?
or should i just leave both the movies in there original un-chaptered state?

sorry, i really dont know if this is trivial or not, but i would REALLY appreciate the help, im racking my brains over this for the last couple days, and searched this website, each time finding many different/contradicting posts!

pleassse help me!!
thank you