ajf3, just because it's large doesn't mean it's high quality. 10MB/s is much higher than DVD bitrate (which doesn't necessarily have to do with quality -- try compressing with cinepak). DVD bitrates tend to be around 6Mbit/s. As for VCDs,
352*240=84480 pixels in an ntsc vcd frame
84480 * 3 bytes per pixel = 253440 bytes per ntsc frame
253440 * 29.97 frames per second = 7595596.8 bytes per second = 7.244MB/s
So a 10MB/s MPEG2 is a larger file than the uncompressed original at VCD resolution. In any case, you're likely to be running into the limits of your hard drive's reliable minimum transfer speed around 3-6MB/sec. I'm guessing you meant 10Mbit maybe? That does sound more reasonable, though still in excess of DVD bitrates, and besides, I can't emphasize enough how silly it is to say that an mpeg encoder is good because it can make large files. That is the opposite of the point of compression.
As for DVD and SVCD encoding, obviously no hardware solution can do 2 pass vbr encoding, which is a huge advantage.
Also, the DVC2 is about $250, which is much more than the $0 for a top-quality software-based solution with, for example, huffyuv and tmpgenc. If you must have the speed of CCE, CCE Lite is $250, although it will only do cbr (another reason I don't like CCE much -- if you want vbr you need to spend $4000).
About CCE's vcd and svcd support Aquarius, try burning one with a burner that checks the stream for compliance (e.g. Nero). CCE mpeg streams are incompliant and as a result won't play in some players. You can, however, fix this by demultiplexing and remultiplexing them in tmpgenc, which won't take too long. Read what the people at
VCDHelp think of CCE for vcd and svcd.
I'd say if you MUST have your mpegs right away when you're capturing them, go with a hardware solution, although if you have a cpu fast enough to compress on the fly, you might still want to go with software, unless you're willing to spend >$1000 for a hardware unit that's better than on-the-fly software encoders. If you aren't in a situation that demands that you have mpeg streams instantly, go with a software solution that will get you better quality for a lower price. That's the much hotter deal imo.
-=Marcus