Yes, it's compatible. I burned 3 dvd's this morning using it and had no problems at all. It does take much longer for an .avi file to be converted by Architect than if you already have it converted to .mpg by VV. Since this was my first attempt using this software, I kept it as simple as possible and used mostly default settings. I didn't try adding any titles or anything fancy....just wanted to see my first movie on the tele.
John