www.videohelp.com has lots of answers. What you want to do probably requires four steps:
1. rip the mpeg2 information from the vcd. I don't know specifically which software you need to do this, but I've done it before with software I found at the link above. You should be able to find a FAQ that tells how to do this, or someone on their forums probably knows.
2. You need to get a piece of software called TMPGENC, go to file->mpeg tools and do a simple de-multiplex on the file produced by step 1. This action will create two files, one for the audio and one for the video.
3. ???
4. Profit!!!