Jan. 13, 2012: I just discovered DVD Styler, an excellent free app for making DVDs that can be watched on TV. You just import the videos you want for your DVD [and DVD Styler can work with almost all video formats, including FLV, CamStudio, MPEG-4 (DivX, Xvid), Real Video plus “containers” AVI, ASF (wmv) and QuickTime]. If your DVD includes many short videos, it is easy to group similar videos together on different menu pages.
In my experience, DVD Styler is as good as or superior to Roxio, Windows DVD Maker (which handles only a few file formats) and DVD Flick (free but very limited menus). I had no trouble making a DVD with 9 different videos in various formats and using 3 different menu pages for each set of related videos.
The only serious weakness I observed was a lack of realistic previews. What size font is best to use, which color combinations best for highlighting, etc. are mostly a matter of trial & error. Burn the DVD and then see how it looks/works when played on computer, DVD player and on TV. Remake if not aesthetically pleasing.
This free software can be downloaded from http://www.dvdstyler.org/en/. There are versions for Windows, Mac, and Linux. You can also download a portable Windows version (to run from a Flash drive or USB stick) from http://portableapps.com/apps/music_video/dvdstyler_portable.
Menu Page from DVD that I Created
Screenshot from DVD Styler Software