advice on recording avi. movie files

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Hi! I need some help you movie recording geniuses,please.I have Windows XP with the media center.My media player records my cd's,and the media center records my dvd's.But only mpg, or mpeg files, do I need additional software to convert the avi. files to be recorded? If so, what do you reccomend? I want something that is easy to use and affordable.Thanks for any help.