The Americans are not familiar with this: Video CD. When I first got to U.S., I asked around, nobody in the IT business knew what was a VCD...all they could relate was DVD, which was a new thing at the time, so new that I didn't know about it and actually thought that DVD was the name Americans call VCD.
Now, on to the more serious matter: It is therefore not easy to find a software that deals with VCD conversion. VCD uses mpeg1 (not mpg2) video format. The video file extension is .DAT. There are several folders on the VCD but that is just how VCD's content is structured, nothing important. After many trials and errors, this is the best procedure I've found so far:
Note: I've tried VCDGear & VCDEasy. Neither works properly. VCDGear couldn't read mpeg1 (some claims that it's due to the fact that there's distinction between mpeg-1 & mpeg-1/VCD formats). VCDEasy is useless in the latest Windows version as it somehow requires old version of WMP media player. As for free video conversion, Handbrake is very cool which supports many video formats, however, the only freeware to support mpeg-1 is ANC (Any Video Converter). I've converted an MOV file to a mpeg-1 video file.
Then, I use Blaze Media Pro to burn the mpeg-1 file onto CD as VCD. Done.
(PS. it turns out Blaze has a 15 day trial period, so I guess I'll just have to either buy it or crack it). Finding a freeware is so hard for this.