Shock, you are a crazy man.
DV avi is compressed.
you want to convert to xvid or divx.
Xvid and Divx are compressed.
you then want to convert to mpeg2.
mpeg2 is compressed.
you then want to dvdshrink it.
dvdshrink uses recompression of sorts, and WILL reduce the quality.
WHY THE HELL DO THAT? Why not just encode straight from DV-avi to mpeg2? It makes no sense. It's about as bad advice as it's possible to give.
To the OP:
you have your 12GB dv-avi file. These aren't playable in DVD players. MPEG1 is. MPEG2 is. You want to convert to one of these. MPEG2 is best quality. If you've got 12GB of DV-avi, you've got about an hour of video. This will fit on a dvd with good quality, no problems. After you've edited it in win movie maker, it'll be even smaller, so you'll be able to assign a higher bitrate to it.
Once you've edited it and have it how you like it, look into an mpeg2 encoder, like tmpgenc as mentioned above. He got something right. It's a perfectly serviceable mpeg encoder. It's got a dead easy wizard, you can't go wrong. Once you've got that, you need to author your dvd. There are a lot of packages about for that, but tmpgenc dvd author is again easy to use. IIRC, it'll burn the disc for you as well.
Good luck! read marc's guides, read about the forums, but don't be too bothered if it doesn't work out first time, there's a learning curve. Have fun!
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