Hi Shawn
The way I do this is by importing the AVI as an asset and then I right click the AVI, to create the timeline for it. This will set it as “First Play” automatically.
Now transcode and burn the DVD.
(I don’t know if its possible to loop it though, without a menu.)
Hope this moves you in the right direction?
Good luck
Chris
A complete and utter new boy but willing to learn and contribute if I can!