Hey, Pozzo.
As I think you've worked out by now, Mp3 is an audio only file format and is not video. 
Switch focuses only audio-only formats like Mp3 for conversion and therefore can't help you much if you want to convert video.
If you wish to create VCD's that will play in your DVD player then you should get Nero 6 or 7 available for purchase here. Nero can also burn to DVD.
In the case you don't wish to pay any money and just need a quick conversion then you should download the Ulead Video Studio 9 Trial available here. Ulead Video Studio 9 can be used to convert your AVI file to an MPEG which you can then burn onto a CD and play in your DVD player, if you really like it (like I do) I'd recommend buying the software outright so you can permanently convert your video files whenever you want.