It's totally legal, ok the best way is to Buy or "obtain" a copy of Nero Burning Rom, version 6 or 7 is fine.l During the create process you can select different types of CD's to create, VideoCD should be an option. Now as far as your existing video file being totally compatible that's another story. With Nero 7 Professional it includes a very handy program called "Nero Vision". If you use this program, select VideoCD, and select your video file to add to this videoCD, it has auto conversion options, so that whatever video file you had will work on a standalone DVD player. VideoCD's simply use CD-r media, nothing confusing about that.
Good Luck!