do you want vcd or divx? there's no reason you shouldn't be able to use divx instead, which will allow you to have a much higher quality file all round. my http://acidrip.sf.net
program might suit you well if you do want a divx file (i'd recommend you try divx if you've not had any experience of it already)
there are a number of vcd applications too, such as the mencvcd script that comes with mplayer, and front ends like qvcd.