I assume that the videos are avi files encoded using divx/ xvid.
There is no point re-encoding the videos to mpeg1/ mpeg2 format so that you can write it to a dvd and watch it on a standard dvd player. It is a very time consuming process and not worth the effort.
The easiest way is to burn the files on 2-3 simple 4.7 GB DVDs and watch them on a divx/ xvid compatible DVD player.
Mitashi has a player, the DVS-999 which sells for about INR 3500. But it only supports divx and that too certain versions.
Techcom has a DVD player, the
SSD-DVD3100 which costs INR 1900. There is another model SSD-DVD3300 which costs INR 2350. This one can read files from memory cards and usb drives. I have lifted the prices from the Techtree review of the product. Read the
techtree.com review.
Since I don't own any of the above players, I cannot comment on whether they work as reviewed/ advertised. So, when you go to the store, take a DVD with an assorted collection of video files - divx-avi, xvid-avi, mp4, dat, mpg etc and see to it that all of them work as expected.
As far as I know, this is the cheapest and least time-consuming solution to your problem. Hope this helps you in some way.