If you want the DVDs to play on a standard DVD players, use mpg2. If you look at a DVD, you will see VOB files. Those VOB files are mpg2 files under a different extension name. If that is the case, why encode (render) to something else and when the program will render to mpg to be burned to the disc.
Rule of thumb, for best resolution, put only about one hour on a single layer DVD; a little less on a double layer DVD.
If you are:
1) Just using a computer to play the
video files, then DV-AVI being uncompressed would be slightly better but probably not enough to tell. Uncompressed DV-AVI files are very large compared to mpg2 files.
2) If you want to put more than about 1 hour of video on a DVD you could use DivX or XVid compression. Your DVD player would need to be able ot use that file format.
If those are very old DVD players, stick with +R discs. Some old players had an issue with -R discs. There is no way to guarantee that all discs will play on all players.
I don't know what you budget is but don't try using store brand or a brand beginning with the letter "M". Those have been iify in the past. For best DVD media, look at JVC -ToiyoYuden (on line only), Verbatim and some of the older Sony media.
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BoilerPlate: To posters who ask for help -- it is nice to thank the volunteers who try to answer your questions !
Anything I post unless stated with a reference is my personal opinion.