I like Nero for just burning pre-made media. It'll do menus, but the content has to be premade and ready to toss together. For editing the content, I still use TMPGenc Express and DVD Author. It's not free ($100 for Express), but it's wide ranging in it's abilities. Lot's of great formats to pick from during the editing. I use it most of the time, so it makes the higher priced Adobe jealous...and me feeling like I wasted money. Adobe is high quality, but it's really above my needs. Maybe junior movie makers love it, but I get by with TMPGenc stuff just fine.
Otherwise, Windows can just burn the .AVI's to discs as all set-tops should play that format fine. Menu's are out, but it's a start. I probably haven't explored into it in Win7 movie maker or too far in Nero, but it's worth a shot too. Nero Ultimate is like $75.