First of all you can't convert MPEG-4 AVC video to MPEG-4 video without quality loss.

You can convert MPEG-4 AVC video with AC-3 audio to MPEG-4 video with AC-3 audio, but you can't use .AVI container, because it doesn't support AC-3 audio.

What containers does your DVD player supports? AVI, MP4, MKV, OGM, DIVX??? (please refer to the user guide)

Are you OK with downgrading audio to stereo MP3?

I would use freeware VirtualDub or VirtualDubMod to convert your video to the format supported by your DVD player, but you need to choose audio/video codecs as well as container properly.