VCD
VCD video is in MPEG-1 format, and the video bitrate is required to be 1150 kilobits per second. Audio is encoded as MPEG Layer 2 (MP2) at 224 kbit/s.
The audio, video, menus or chapters may be included by storing the respective files in the correct directories.
SVCD
Video is encoded as MPEG-2, and may have a variable bitrate up to 2.6 megabits per second. The lower bound for bit rate is not specified in the standard, though hardware compatibility on most SVCD and DVD players effectively limits it to between 300 and 600 kilobits per second. Audio is stored in MP2 constant bit rate format at a bit rate between 32 and 384 kilobits per second.
DVD
DVD-Video disks utilize either 4:3 or 16:9 aspect ratio MPEG-2 video, stored at a resolution of 720x480 (NTSC) or 720x576 (PAL). Audio is commonly stored using the Dolby Digital (AC-3) and/or Digital Theater System (DTS) formats, ranging from monaural to 6.1 channel "Surround Sound" presentations. DVD-Video also supports features like selectable subtitles, multiple camera angles and multiple audio tracks.
For more Technical stuff read this
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How To
Method I
You could use an software like *www.vcdeasy.org/
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Method II
Freeware/Fun/Cash cruncher's Method
PART 1
Encoding
To encode you video in the desired format [mpg/avi] you can use tools like:
>VirtualDub
[recomended]
Probably the most powerfull encoding editing tool. Master it and you wouldnt need anything else.
*sourceforge.net/projects/virtualdub
>AutoGk
[Recomended]
*www.autogk.me.uk/
As easy as any paid tool.
tutorials: *www.doom9.org/
Big bro: Gordian Knot [Very very powerfull]
>Auto transcode
*sourceforge.net/projects/auto-transcode/
PART 2
Burning
Best choice would be to use nero. You can also try:
>Vcd commander
Its really easy to use and will alow you a great deal of control.
*sourceforge.net/projects/vcdcommander/
>VCD Wizard
*sourceforge.net/projects/vcdwizard/
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^long post^