Scott, an
alternative for anyone who cannont set their DVD player to play widescreen is to *re-sample your .avi* movie to fit width-wise on a regular screen. You can use
ffmpegX for this.
For a widescreen .avi of say, 624x352 pixels, set your video size to say, 448x256, and simultaneously add letterbox padding to all sides (top=54, bottom=54, right=15, left=15) for a final video size of 480x360 pixels. (Note that in ffmegX, only a few formats, namely those using the ffmpeg option, suppport letterboxing. I find AVI XviD (ffmpeg) gives one of the better results)
Now when imported into iDVD, burned and played on a regular TV, it will appear correctly.