Oohoo. You speaking my language.

Have a look here:
http://www.digital-digest.com/software/category-65.html
I used to use Virtual Dub years ago, before I got Premiere (steep learning curve? It ain't a curve, it's just a cunningly wrought interface). Virtual Dub is fine for stitching avi clips and looks to have got a bit cleverer since I last used it.

This:
http://www.winavi.com/en/video-converter/video-converter.htm
looks like it might do the job for mpeg conversion.

I miss my old finepix with it's avi option. It's worth having a look at Nero6 (or above if such exists thesedays), as it's superb for easily laying a folder full of avis onto a nice set-top compatible VCD.