I've been using this program called dvdSanta that I got from someone a year or two ago, which on the plus side it's really easy to use and can convert a 700MB AVI file into VOB in less than 30 minutes without causing any artifacts, but on the minus side you can't rewind/fast forward. I don't know what it's deal is, but whenever you try to FF/RW a DVD made with dvdSanta, it skips forwards or backwards by full chapters (5 Minutes). It also doesn't let you set your own chapter breaks.
I've tried the freeware program AVI2DVD, but it can take upwards of 5 hours to convert one file, it introduces compression artifacts, and sometimes it'll give me cryptic error messages and refuse to work. I'd like something that's still easy and quick, but that would actually allow me to FF/RW and set my own chapter breaks. That's really all I want, I don't need anything fancy.