First update your Nero from here:http://www.nero.com/us/nero-up.php and download this free converter from VSO: http://www.vso-software.fr/ is called DivX to DVD.If you want something easy to burn your dvd download from the same site Copy to dvd but is a shareware.Open DivX to DVD find your file and before you start converting checkmark burn with Copy to DVD and be sure you have a blank dvd in your burner.If you want to burn on cd’s the story is different.
WinAvi or any converter you like is going to convert your file to VCD(video cd) or SVCD (super video cd)just be sure to check your exit file size to fit a cd(700 M

.When is done open Nero to cd and burn it.Choose Nero Vision and the type of cd you converted and add file no bigger than 703 MB.Good Luck.