Type-2 AVI to MPEG-1 for VCD, how to get quality w/o bitrate

I read a lot of useful posts here explaning that VCD only supports 1150kbps bitrate. But my VCDs with this bitrate really look bad where there is a lot of motion. (Source AVI looks great) My VCDs look much better when I use 2200kbps, but I understand this is 'Illegal' and will not work on most DVD players. So how can I make a VCD-legal mpeg from AVI that will really look good? (As good as VHS tape, because I read that VCD is supposed to be the same/better quality as VHS). I don't want to fit a lot onto the CD. I want to make huge VCD-legal mpegs that will look good. Is it possible? Thanks.