The problem lies in the fact that film is 24fps and NTSC video is 30FPS. How do you fit 24 frames into 30 as smoothly as possible? Repeat every forth frame! This in it self leads to a slight choppyness. The way to fix this, is because NTSC is actuly 60 fps interlaced into 30FPS. where every other line in a frame is a actauuly a differant frame. so line one has the first frame it needs to show, line two has the second, line 3 has the first again, ect. How films are converted smoothly to video is a prosess called 3:2 pulldown. Basically its saying for 3 frames of film = 3 full frames on video. The next 2 are interleaced containing 2 film from the film. On a standard tv, this gives the illusion of smooth film play back. dvd players are converted using 3:2 on the fly if a movie is progressive (encoded at 24fps). You computer hooked up to a tv, is sending 30FPS interlaced, so 60FPS. By your computer doing this, it self is sending somwhat of a 3:2 pulldown signal. Hard to expalin in detail how this works, but the computer its going interlace all video coming from it, regaurdless if its a game, movie, or just a webbrowser.
Enogh technical. Toast itself does not burn progressive (encoded at 24fps) dvds unfortunalty. It's a request sent to roxio, but have yet to see any results. So toast has to make 30 fps, so it relies on the repeat every forth frame to make up the missing frames. A program called JES deinterlacer can take a video, and perform 3:2 pulldown uisng the standard conversion option and output to DV. But its a messy program and hard to understand if you don't know what you are doing. Pluss using that, you lose the progressive material for best viewing in a HDTV.
My seggestion is do what you were going to do and buy a divx certified dvd player. I have one, and it does perform 3:2 pulldown on avi files, leaving a nice smooth image.
Hope this helps, and see if we can get roxio to add a progressive 24fps option into their dvd encoder.