So I have my avi file for my animation, and my wav file for the audio goes with it. When I bring these both into Blender’s video editor, I can’t seem to find the correct settings (Do Sequence, etc) to get it to output a new avi file WITH the sound integrated.
What do I have to do to achieve this?
Thanks 
Currently, the official build from Linux would let you do this using ffmpeg. Windows build doesn’t - it was too unstable for the official release,but they’re working on it.
You can try a CVS build from www.graphicall.org or you can try using VirtualDub to put them together. VirtualDub works well with AVI video and Wav audio, so that might be the quicker solution.
Good luck with animation!! 
Craigo