These are usually the steps I take. In my example we will use a Beavis & Butthead episode I "aqcuired" and the steps I took to be able to make a VCD and watch it on my home DVD player/TV.
1)Open TMPGENc and select VCD NTSC from the options that first display.
2)Locate the file that is to be converted in my case the B&B episode is currently in MPEG4 forma aka DIVX.
3) Choose the output destination for the file that is to be converted and choose convert now.
3) The file will then convert to MPEG1 into the output destination folder. Bam thats it you have a VCD ready file properly encoded and ready for VCD conversion.
4) Open NERO BURNING ROM or another burning program that has a VCD option.
5) Select create VCD Movie,and select the new converted MPEG1 file that was created and drop this into the project.
6) Burn CD and when your done you have a nice VCD that is ready for action