I've been converting videos for around 2 years now, and let me tell you: unless you've got a ton of free space on your computer, don't bother with DVD, especially if the source is low-resolution.
If it's around 352x240 or 352x288, convert it to Video CD (VCD). Most DVD players can handle them no problem.
If it's closer to 640x480 or so, convert it to Super Video CD (SVCD). Since it uses the same codecs as DVD, you get great video with almost-100% compatibility on DVD players.
If it's large, I HIGHLY recommend using the KVCD format. (http://www.kvcd.net) It's not VCD- or SVCD-compliant, so compatibility's down a little, but being able to stuff 360 minutes of video onto a regular 700 MB CD-R is donuts.
HE ROCKS US STILL.
Proud Supporter of the Queen Lives Compilation