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I have used both TMPGEnc and DVD2SVCD to encode VCD/SVCD's. IMHO DVD2SVCD is way faster, much easier, and much more stable. Use the CinemaCraftEncoder version 250 not higher. I have had many .avi files that TMPGEnc just could not handle (program would crash after like 8 hours :( ) These same .avi's worked perfectly fine with DVD2SVCD. Then I burn the bin/cue at 4x with VCDEasy. One tip I read that has saved hours of aggravation: If you have a slight audio sync problem on your standalone pause the s/vcd then hit play. I watched hours of movies slightly out of sync til I read this.
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If U R In A PAL Region I Dnt Think Nero Converts To PAL only NTSC. I THINK
So The Best Way Is To Convert to woteva region ur in using TMPGenc then only use nero to burn cuz i had loads of problems converting wit nero
good luck