Sorry, until someone comes along and advises you further I cannot help any more, DONT worry, SOMEONE will come along. I will send Arniebear a PM.
Your drive will read CD/DVD and write to CD but not DVD's. http://www.cdrinfo.com/Sections/Reviews/Specific.aspx?ArticleId=13542 You can convert your avi to mpeg and burn it onto a CD, otherwise if you want to do DVD's suggest you buy a burner for that purpose.
i dont think thats all though lately i cant burn cd's with itunes( i technicly can but somehow its just like when i burn avi's onto cd's i can only play them on my comp.)