I have 8 AVI files which I am trying to put onto a single DVD. They are all approx 45 min long and total 4551 MB.
I have the registered version 3.0.26
I used the "my DVD" template with a custom bg picture and song.

--I assume that the software will automatically put each of the 8 videos in one of the template window panes for selection from the DVD menu.

My problem arrises about 4 hours into burning the disc. It "creates titles for videos 1-8" just fine, but when it gets to the next step, I get the error message: "Failed to compress Video". There is no other explaination as to what I have done wrong or what I should do to remedy the situation. Can someone please help me understand what Im doing wrong?

You need to reduce the size of this project or compress it . You have to leave at least 200MB's to finalize the disk. Welcome to the forum too! I use no more than 4450MB's on any single layer disks as a rule of thumb.

Ok thanks,
Ill try and take one of the avi files off and see if that works.
About to start it over so I guess Ill find out in about 3 or 4 hours if it worked

So I took an avi file off which left me with 1256 MB in free disk space. I once again was able to get through the entire title writing portion, but as soon as it gets to the next step I get the same "failed to compress" error msg.
Could there be something wrong with my avi files that would cause this?
I have preplayed all of the files and they work just fine in any media player.

I am totally lost on this issue. any help is appreciated.

I'm afraid you have to test it for creating one avi file. Make sure it’s not the problem of your file.
If you get the same msg. Please tell me the details of these files, such as bit rate, frame rate, etc. I’ll try my best to help you.