Nero 6 Ultra works for this. Go to "Make a video CD"
then "Add video files" then browse for the AVI you want
to convert. After that, follow the "Next" steps to
complete the VCD setup and burn. Be sure to go to
Automization, Autoplay, Action: play (file) on
the "Create menu" page so the video starts when inserted
into a DVD drive.
I just tried it and burn the compilation, but it pops up a dialog saying
"Save Image File", which is .nrg file. This is not VCD format though. Please
help. thanks!