Most people use tmpeg (I always screw up the spelling, so it could be different) encoder to turn divx to mpeg2 for vcd. Roxio easy cd creator (platinum) is the easiest program to burn video cds that actually work.
Getting them to actually work in your DVD player is a different story. Not all players can handle them. Some can do it with CDRs but not CDRWs. Others can't do CDRs, but can do CDRWs, and even then, some require a special color disc, some do silver, etc.
As you can tell, I've tried all of this and found it to be NOT WORTH THE BLOODY HASSLE. But your milage may vary.