that might be your eyes that are blocky and gay max
anyways, my opinion on the matter are still:
Make your menus in a program like DVDlab, compile the project and find out how much space you've got to play with. You then take the size of the project and - it from the space on your disc (4.38GB normally). You then use a bitrate calculator like the one at
www.dvdrhelp.com , choose your audio type and size (use AC3machine which is a frontend for besweet to encode your audio), then use the bitrate calculator to get your mpeg2 bitrate. Fire up CCE, enter in the bitrate settings (and the recommend settings @
www.dvdrhelp.com ) and then encode. Get your mpeg2 file, add it to your menus made in the program like DVDlab, import your audio, add it to the same track. Then compile your menu system. If your program spits out a video_ts/audio_ts structure, use IMGtool to get an iso. Mount this iso and check to see your video and audio are in sync. If not, go back to your project and recompile and repeat. If it is, burn the image and you'll have the very best possible result your likely to acheive. I've done one or two this way and they look very nice. I wasn't working with a xvid and upgrading, I was working with DV avi files which are about 19GB big for an 1hr30min movie. Its the same process too.
For something quick and shitty, nero can be used to put ordinary xvids onto DVD. Emphasis really is on quick and on shitty, you'll end up with max eye mode lol