I haven't built it myself. Have you read through the other options. "./configure --help" & the README file may provide information on other options.
What is it that it can't do? None DV formats need to be imported. The pre-compiled package version I have will do that.
IMHO, if you want to transcode video from one format to another, ffmpeg or mencoder would be better tools.
You mentioned AVI files. Remember that AVI is a container format. It might contain DV streams or different video streams inside.
The description of the Kino package on my distro mentions that it will record DV & DV-2 streams in AVI container files. So I imagine that
avi files are supported but you may not have support for the video streams your AVI files are using.
Which distro do you have. For SuSE, I'd recommend installing the Packman repository. Fedora has a similar repository that have better versions of media related packages.
I'm not sure if the message you saw "If you must only support dv1394" means that this option enables only dv1394, but I think that it means that you should use libiec61883 unless you specifically want to use libdv1394 instead. I think you left out options for ffmpeg, libavcodec, etc.