Do you want to fit them one DVD for playback on a standalone DVD Player? Assuming you do, you *may* need to compress them to get them to fit on one DVD.
If you don't mind a small sacrifice in quality, I'd recommend batch transcoding them all in TMPGenc Xpress. However, do a test first to ensure compatability. Given that you will have to encode some of the AVI files to MPEG2 anyway, it won't be much of a chore.
I'm thinking that the m2v files you have are not DVD compliant, hence the GOP structure warning. Transcoding using a DVD template will cure this.
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