Every time i say create DVD it says that a error has occured and DVD Santa needs to shut down, Ive only tryed it with one movie, and I think it said something about not being able to do the XViD movies?

It does do xvid's fine...I'd say there's a corruption or something missing in the file that santa can't read....I've had this happen to a few movies as well....
You could try running the file through http://www.video-fixer.com/ and see if it helps...

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try convertxtodvd . it will convert to dvd and burn , so easy to use.