it's not really a good idea either way. VCD is way crappier in quality for a similar-sized file. The only advantage is that it would play on a stand-alone DVD player, but with quality like that why would you want to?
I use nero. For some videos that require a divx codec to run on wm player or real one, etc... i use the latest nero 5.5 with the wma plugin installed. If you can drag the file into the vcd compilation folder in nero, and it can play using the nero option in the same folder, it should work. But it will encode it, which will take some time, before it burns it.