PCs can handle just about any MPEG stream you throw at it, so compatibility isn't an issue there.
If you're trying to make VCDs the current favorite is
TMPGEnc. The trial version will let you make an unlimited number of MPEG-1 video streams, and gives you a 30-day trial of MPEG-2 creation. (
For higher-res DVD stuff) I also recommend trying
KVCDs, as opposed to standard VCDs. Almost any standalone DVD player made in the last 3 or 4 years can play them, and quite a few made before then. It usually winds up looking better, and you can fit more video onto a KVCD than a VCD. Beats breaking up the movie into two discs.
To burn the VCD/KVCD mpegs to disc, I suggest the early, freeware version of VCDEasy, (
Version 1.1.1) assuming you somehow don't have a burning program capable of doing VCDs. Even if you do, consider using it; it lets you insert chapter breaks, which is nice.
For DVDs, I stand by my above statement, though you'd have to pay for TMPGEnc to get more than 30 days of use. There's a freeware alternative --
D.I.K.O. -- but I've yet to try it. Either way, you should know that Variable Bitrate encoding is 100% DVD compliant, provided the bitrates stay within a certain range. On the
KVCD site you'll notice there's some TMPGEnc templates for "KDVDs"; as the site mentions, these are 100% compliant, and due to their modified GOP structure and Quantization Matrix can let you fit a lot more video onto a DVD than "standard" format, with minimal to no quality loss.
Now those programs only make video, they don't create the VOB/IFO files or anything else. My suggestion is a relative of TMPGEnc called
TMPGEnc DVD Author. If you just want to make a simple DVD with some basic menus and chapter breaks, this program gets the job done remarkably well. Again, not free, but very effective. An advantage of using this software is that it lets you specify separate video and audio files for each track if you wish; this means you can render the video stream only with TMPGEnc, and -- instead of converting the audio to mp2 -- use a program like
BeSweet with the
GUI add-on to convert it to AC3, a superior audio format, at least compared to mp2.
One final word: if you don't already know, 720x480 MPEG-2 video isn't the only valid DVD resolution. There are several others (
conveniently listed at VideoHelp.com) which you can use. Of course these resolutions are lower in quality, what with having less pixels, but if what you're working with isn't great resolution to begin with -- or isn't 16:9 resolution -- there's almost no reason why you shouldn't use them. Especially since VCD video (
but not audio) is DVD-compatible.
Hope this helps. I've said this before and I'll say it again: if you're confused about anything, feel free to send me a Private Message.