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Solve : Saving .srt and .avi files onto a DVD and compressing video file?

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Hey
I wasn't sure where to post this so I just chose 'OTHER'.
Anyways, I was wanting to save my .srt and .avi files onto a DVD so I can play them on my DVD player.
I ALSO wanted to fit more than one video FILE onto the DVD (and hopefully not lose too much of the video QUALITY). I know that would mean I have to compress the files but I wasn't too sure how considering .srt files are involved. Do I compress the video files first or do the other first? I also know that I will NEED some kind of software to do all this. Is there a good software someone could recommend? Is there one that I could just download for free? I hope it's not too much to ask for but simple easy to understand INSTRUCTIONS would be great
Thanks in advance



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