I have a 699meg dvix rip that I'm trying to convert over to mpeg so I can slap it in VCD format. When I convert it over it comes up to about 2.5gigs. Needless to say a bit too big to fit on a cdr... I'm new at all this so if this question is totally retarded please go easy on me.
DivX(originated from MPEG-4) compresses the movie in to alot smaller size then VCD. Reducing bitrate and size(resoulution) should help.
I guess you didn't encode the audio again and ended up having audio in AC3 format, normally VCD movies are around 1 - 1.2GB.