Couple of questions before we launch into everything else....
Was this digital video made originally on a digital camcorder that was
purchased in Australia or one that you took with you to Australia from the
US?
Where are now now located... I'm presuming the US?
1hr 25 minutes is just fine for the average DVD, which will take up to 2
hours of AVI 'footage'.
However Windows Movie Maker CANNOT burn to a DVD... you must use third party
software to do this such as Roxio EZCD DVD Creator v6, Easy Media Creator
v7, Nero or Sonic MyDVD.
Do you have a DVD burner or are you looking to make an SVCD or VCD from the
footage.... these can be burned on a CD burner but are of lower quality than
a DVD. A VCD is about the same quality as a VHS tape, and can hold
approximately 54 minutes. An SVCD, although higher in quality, can only
hold approximately 34 minutes.
So if you can let us know how you want to save the finalized vacation
footage and confirm that it was indeed made in NTSC, we can assist. If it
was made in PAL, it's going to be a bit more difficult but not impossible!