I just read through this thread again, and it sounds like you're trying to burn VCD-compliant files directly to DVD. I was under the impression that VCD was MPEG1, and it was SVCD that was MPEG2. I'm not suprised that you'd run into problems trying to make MPEG1 DVDs. I've found that DVD creation software will be lenient with the video resolution, but not with things like video and audio bitrates.
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Matt