It's a messy job and the quality will likely be poor. Converting to DVD will involve:
Interlacing the video
Converting to the inferior MPEG2 codec
Taking any widescreen footage and letter boxing it in 4:3 frame or making it anamorphic
For the trouble you'll go through and the sub-par quality you'll get you're better of buying a media receiver (ACRyan or WDTV Live) and using that to play the video.
As an alternative this may be of interest if you don't mind streaming from a pc/laptop to the xbox. Never tried this though, only found it recently for someone else to check out.
Try aneesoft DVD creator, a program allows you import different video formats such as AVI, MP4, WMV, FLV, DivX, VOB, M2TS and MKV for outputting to home movie DVDs, if you want to create DVD folders and ISO image files, it's OK too.
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