DVDcatalyst works great.
There are a few I use. Super
The other is MPEG Streamclip.
Oftentimes AVI files have frame errors and I use VirtualDub to fix them.
NC works with the basic h264 encoder. It does not work with the advanced encoder.
I also have Microsoft Expression Encoder ($). I needed it for something else. It seems to work on most avi files.
I recommend making the volume louder - 200-300%
The search I did on this board seems to be mostly about DVD conversion. I'm not that ambitious yet!
From my perspective, video is video. Many tools seem to treat DVDs and video files as being something different, but to me it's the same.
Just start the program, select the NOOK profile, drag your files (one of all of them, it doesn't matter) onto the program, and click Go.
I did not realize DVD Catalyst did video files. It is well worth the purchase and avoid using poorly supported free products.