I need either (needs to be free of course)....
 

A new dvd creator that uses Mpegs and can fit more than 2 hours worth odata on it

Or an AVI converter into Mpeg software

Had a look online, all free to try, need to buy crap, any idea's?

http://www.videohelp.com/

I don't know any programs for sure, so this is the most help I can offer. I'm sorry it's not more, but type in what you need.

just download WinAVI converter off torents.

or 007 dvd creator, it is the man.