What version of Premiere Elements are you using, and what computer operating system is involved?
The Premiere Elements project files have a .prel file extension. The project file (.prel) can have .avi files imported into it so that they can be burn to DVD-VIDEO on DVD disc. What did you have in mind for "DVD"?...Depending on your program version, you can create DVD-VIDEO on DVD or the higher resolution product AVCHD on DVD disc. The problem with the AVCHD DVD is that, although it can be burned to disc with a regular DVD burner, it cannot be played back on a regular DVD player.
You need to supply details so that we can put everything together.
1. What are the properties of that .avi file? Lots of .avi files, some can have problems with Premiere Elements....AVCHD.avi, Xvid.avi, MotionJPEG.avi, for example. If you tell us the brand/model/settings of the camera that recorded the .avi files, that might give us the video properties information that we need.
2. You talk about a 2nd computer. Does this 2nd computer have Premiere Elements same or different version than on the 1st computer.
If the .avi file is on the Timeline of the project on computer 1, you will need to export that Timeline to a file and then import that export into Premiere Elements on the 2nd computer
Project Archive/Copy Archive the 1st project, put the resulting Copied Folder on USB Flash Drive for the transfer of project file and project media to the 2nd computer and its Premiere Elements.
3. You talk about copying to DVD disc...Above I have targeted burn to disc DVD to obtain the DVD-VIDEO on DVD that can be played back on a regular TV DVD player. Premiere Elements Editor does not do burn to DVD disc as "data disc".
Lots to discuss. We can go at whatever pace works for you. But, the details are important and that is where the answers will be.
Any questions or need clarification on anything above, please do not hesitate to ask.