Firstly, you need either a DVD player that plays AVI or DivX Files, for the disc to play, Xboxes and PS3's Can! Lol. As for burning, try nero, its not free, or Power2Go is what I Use, it comes with HP Computers, im not sure is its free or not.
Hope I helped you!
Before I got my Xbox, what i did was buy a cable that connected the Comp to the tv, and watched on TV through computer =)