I used to make a ton of VCDs (I have almost all of the MST3K episodes in MPEG4 on my computer and I would make them VCDs so I could watch them on my DVD player on the big tv).
I used TMPGEnc to encode it into a MPEG Layer 1, and then I used a program called VCD Easy to actually burn it to a disk (it lets you do things like set chapters etc... on VCDs. I would usually just place a chapter every 5 minutes so I could easily skip around the disk if I needed to).
I actually got all of the information I needed from the community that distributes the MST3K episodes (
http://dapcentral.org). It looks like they may have changed the way they do it now in their FAQ (I did this a long time ago, and I no longer have to do it because my DVD player will now play the MPEG4 files), but you could probably get some useful information by going to
http://dapcentral.org/modules.php?op=modload&name=FAQ&file=index&myfaq=yes&id_cat=7Hope that helps, I remember it was sort of a pain to have to goof with all of that stuff, once I got it working right I just sort of stopped playing with it or upgrading software (didn't want to risk breaking it as it was so tedious to get it to work in the first place).