How Much Time to Convert Files?

I'm trying to convert a 700.5MB .avi file to something that my TV's DVD player can use by way of iMovie HD 5.0.2 and it is taking what seems to be a lot of time (hours). When it starts the import it says it will take about 80-90 minutes, but after a while the progress bar seems to stop and it tells me it will be 220+ minutes to completion.
I've quit all programs, logged out users, all so that all the RAM that can be available, is available. Am I being impatient? Is an iSight iMac with 512MB RAM being asked to do too much?

Susan,
A .avi file is just a contanier for a video format that could have been created by one of the many different codecs (eg. mpeg, divx, dv).
The free MpegStreamclip may be able to convert the avi file to the DV format so you can import into imovie and edit.
http://www.squared5.com/svideo/mpeg-streamclip-mac.html
I'd increase my ram to at least 1GB (= add another 512MB).

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