Geordie,
Hmmm. Not quiet sure what you're trying to do here. If you are wanting to make DVD's from your recordings then there is no need to convert the dvr-ms files to avi format first.
You're actually doing twice the processing and losing a lot of quality to do that.
In essence what you are doing is:
1. Converting dvr-ms file to mpeg. (DVRMSToolbox does this).
2. Converting mpeg file to avi (xvid) (Crunchie does this).
3. Using some DVD app to convert back to mpeg format.
4. Cutting out ads and burning a DVD.
What you really want to do is this:
1. Convert dvr-ms to mpeg.
2. Remove ads.
3. Burn a DVD
You can do all this with VideoRedo, it can cut ads and convert to mpeg in one step. It will also even write out vob files for burning to DVD.
Crunchie is designed for people who keep their shows in avi format (burnt to a data DVD, not video DVD) for storage.
Hope that helps a litte
Cheers,
Arkay.