What did you burn the dvd with?
What speed did you burn the dvd with?

Personally I use Toast 7 Titanium for burning which is reliable for burning & can also convert avi & mpeg files before burning.

It's often a good idea to burn using a dvd-rw disk "if" your burner supports dvd-rw burning.

DVD video disks should be burnt in UDF format. If you burn a disk as a simple data disk, then it might not play on many dvd set-top players.

It looks like you used the finder to burn the dvd. The finder can't burn dvd-video format disks. It burns data disks. If you look inside the disk folder, you'll see it is identical to the original file, right?

I just burnt a disk the way you did it. It's a data disk. It will play on my dvd player "only" because my set top player supports divX video format.