AVI Conversion help please

Ya I've been trying to convert a series of TV shows to a format that I can burn onto a DVD and watch on dvd player. I believe the files are divx or xvid, they are .avi's. They are excellent quality, but to keep them that quality, I have to convert to DVD, and that takes up like a whole DVD. I want to fit at least 3 one hour episodes onto a dvd. SVCD seems to be the only way, but quality lacks a bit. Any way around this? Also, I couldnt quite get a match for the size of the movie when converting it to new format. It would always be a little too wide or little too tall. I messed around with the aspect ratios like 4:3 and 16:9 but nothing was a perfect match. Do you know of any way to get it to be a perfect match for the original movie? thanks