If you seek for a "one-click" tool you could try the best one: DiKo (
DivX
In
Kvcd
Out).
The tool was originally coded to allow convertions from DivX/XviD/MPEG4 to KVCD/KDVD but nowadays you can input any "AVI" and have a fully compliant DVD output.
You can find it at
http://www.vmesquita.com/en/diko.htm.
There are to versions, one is free and the other is commercial, but I think you'll do fine with the free one.
BTW, you should consider their BDVD format instead of the DVD format.
It is written in a DVD5, based on 720x576(PAL) or 720x480(NTSC) but with some tweaks that will greatly improve your encoded movie and will still play in every standalone DVD player.
And if you find any trouble you even have a forum to post your questions in English or Portuguese

.
Those guys at vmesquita.com learnt from kvcd.net which is the landmark in VCD/DVD tweaking.
I'm only advising vmesquita.com instead of kvcd.net because at kvcd.net we don't allow discussions about DivX/XviD sources.
Cheers