Burn 3 GB's of AVI Movie Files to DVD?

I'm having trouble burning and getting 9 home movie AVI files from my computer to a DVD.
Here's the problem. When I open iDVD and add even just one of the AVI files to my iDVD project, I'm told the file size is too big...though the AVI file size is about 500mb's. I'm told to check out project info and i've changed the settings to high quality rather than best performance or something. But the file is still too big, even with just that one added AVI file.
I also tried taking one folder with all 9 AVI files and burning it directly through the finder window... and though it took its sweet time "burning"....the final product was an empty disc really.
Help please.

I understand. Therefore my next option I see is compressing these AVI files so the person I send them to will be able to view them on their computer correct?? ? ? ?
How would I go about doing this on my Mac?

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