I have succsessfully converted an .avi file to a .mpg file using tmpgenc. The .mpg looks great whist viewing it on my PC. However, after converting the .mpg to VCD with Nero, the result was disapointing. The picture was a bit grainy and it seemed to go very slightly out-of-sync towards the end. Should I be converting the .mpg file to VCD with another program, or just tweak the settings in Nero. Any advice greatly appreciated - I want to get my head around this!
Converting to mpg using tmpgenc and burning with Nero is fine. I hope you are not 'encoding' using Nero tho.