Question About Adding onto a dvd, making a new one?

Heres my situation, I have a folder Video_TS of the Bob Dylan 60 Min Outtakes, I know how to burn that onto a dvd, but I also have the Original airing of the 60 Min interview, is there anyway I can add that onto the dvd it's in avi format

You'd have to master a new DVD. You could use a tool such as Nero Vision Express, and add the original MPEG plus the AVI, which Nero will automatically transcode to MPEG for you. You could also create chapters and menus if you want.