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Johan_Lundberg said:VLC will do this for you, and it's a very neat program for all kinds of conversions and playback of media files. Best of all, it's open source!
Here's the link:
http://www.videolan.org/vlc/
edit: my bad, it won't output to .avi, but you can output to .mov or mpeg and other formats
Cleaner can do the conversion i think, but it's not free. I would check look for DVD ripping programs. They should be able to do the trick.