Hi Stace,
The problem might be that you are trying to render it as a .avi format. When you render anything as .avi it always tends to multiplies it's size tremendously, and I've learn that it does not necesarily make it better quality.
Try again using the HDV 1080-50i or 60i settings but this time use the .wmv as the format, as you will see the size will not be as much and the quality will still be good.
If you are using a good DVD converting and burning program you should be able to use the .wmv file to burn you DVDs.
I'm a Sony vegas user myself.
Hope it helps, good luck... Danny
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