I have tried everything I can think, tried using iDVD and Toast 8 but I still cant get audio to work.

I am trying to burn an .avi to a DVD that I can watch on my TV, the .avi has AC3 (Dolby Digital) audio. I can get the video to work fine using both Toast and iDVD but for some reason I cannot get the audio to work properly. It works perfectly fine with VCD player on my Mac but other than that I cant get anything.

Does anyone have any ideas? Thanks!