Hi RoHitSaGaR and welcome to the forum
I think it very unlikely that the problems with your DVD playback are down to the cheap firewire cable. I have recommended cheap £5 cables to others on this forum and they have never reported problems with them.
I think the problems are more likely to be down to the software you are useing. If the encoder used to convert the AVI files to MPEG-2 are not that good then they could cause the jerky movements that you describe. I would suggest you try a few of the free trial downloads. Try
www.ulead.com and get the download for DVD Movie Factory 3. Also take a look at
www.dvdrhelp.com for loads of advise on creating DVD's.
Mark.