Cobra... Your problem is not the TV, it is the files you are making the DVD from. You said you have "AVI's" that you are putting on DVD and playing on these TVs. First of all, any AVIs you download are probably at small resolutions (say 320x240, or at most 720x400). When you put those pictures fullscreen on a 1280x720 LCDTV, it won't look great because you can see the flaws in the video. On a Tube TV that runs at 320x240 (480i) natively, its gonna look better. The inches (20" vs. 32" vs. 60") dont matter as much as the display resolution.
Basically it works the same way as cameras. If you have a crappy camera, you lose details, and someones face may look great. If you have great camera, it catches all the details, and then you see imperfections. It works the same way with TVs vs HDTVs. HDTV can reveal imperfections because it is higher quality, TV hide imperfections because the quality is so low.
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Are there any ways I can turn the AVI files I have into DVD with very little compression artifacts in them?
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The answer is no. The AVI files themselves have the compression artifacts, but the transferring to DVD will only accentuate these artifacts. So I recommend getting new files, or dealing with the quality you have, or playing the AVI files directly onto the television (via PC->TV hook up, or AVI playing DVD player). Its just part of the deal. I have an HDTV LCD and some video just looks bad, but you learn to deal with it, and usually I choose not to watch crap video quality.
Jam it back in, in the dark.