Questions About Cinema Craft Encoder SP2

Hi,

I'll start by saying that im a noob where it comes to encodiing cos i've only just got my first Dvd burner so bare with me pls...

I Wanted to get a very high quality Dvd out of an .Avi file (1.2gb) and someone recomended Cinema Craft Encoder SP2.
I Have used Nero 7 but the results were always a bit jumpy to my eye's no matter what speed etc. I burned at and wanted the best possible results.

So anyway I have encoded using CCE SP2 but I end up with 2 files..
one a .Wav file and the other a .MPV file.
Now how Do I put these 2 together to make a .Mpeg2 Dvd compliant file
Or am i using the wrong encoding in CCE?

Or if anyone can think of a better encoding prog. pls advise me?

Thanks in advance

Billy-the-Fish