I want to remake and make some new video. which format is the one most common.MPEG is what i used last and its too grainy and the audio sucks.I think I have AVI.,DVD and one other.

Dude any format can be the best, you're limited by bit rate=file size, and things like that. I recommend the Divx codecs. They're awesome. You can fit an entire DVD quality movie onto a CDR with Divx. that's awesome when you look at it from a quality and file size viewpoint.