I use DVDStyler all of the author movies I have downloaded from torrents. Given the flex of this app, I can make them look pretty professional.
I have used avi ,mp4, mp3, mkv, flv, & even srt subtitle files with no problems. On the menus you can use png, jpeg, and ico files for backgrounds and buttons. You can dvds longer by lowering the bit rate, and make slide-shows on the fly.
Really the only complaint I have is when using wide screen movies they are stretched to fit a 16:9 screen and the picture is warped. The best work around is to add black borders to the original video on top & bottom so the ratio stays the same. This should be a built in option.