In order for you to make a DVD, you need to first output your AVI file as a Mpeg2 file. I understand that Pinnacle DV500 DVD has this ability. So output your movie as a Mpeg2 file and then fire up Pinnacle Impression which should have come with your card. You need to use Impression in order to make your DVD. Also, I hope that you have a DVD burner in your Sony Vaio, otherwise you aren't going to be able to make that DVD.
If you want to make really fancy menus, you have to learn how to use Adobe Photoshop. Also, Premiere can be used to make motion menu buttons, but I don't know if that is supported in Impression.