How to burn CD-R with videos that can be read by PSX

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Hi, I have seen that this topic has not found a definite solution on the net. I think this might be a good thread.
(Admin: if the location is wrong, I'll remove this ASAP.
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I will start with some issues that I already know. Any contribution is very appriciated.

The FACTS:
1) PSX is NOT able to read DivX, VCD and so on: its CPU is not powerful enough to decompress those standards in real time.
2) PSX can only play Stream (.STR) movies. The compression is fair (.STR files seem to need about 20-30 MB/minute)
3) PSX video standard is 320x240, 15 fps frame rate, 37.8 kHz Stereo sound, 16-bit colors.

The standard steps to create videos is:
a) Select a movie. It has to be converted in AVI format with specifications according to PSX standard (see above). The suggested application is VirtalDub.
b) Convert AVI to STR using a converter like Sony Movie Converter.
c) Build an ISO image cointaining the movies and the boot files needed to play them. On the net there are some procedures to do this, involving the program buildCD.
d) burn the iso into a CD using, e.g. CDRWin.

All the steps above mentioned are NOT easy (I got stuck during the process many times). Maybe someone here could clarify this topic.