I probably won't be of much help.. but when I'm burning DVDs (I make DVDs... not VCDs) I use DVDShrink. I beleive that it can rip the DVD to any size you want...

I've never seen the quality of a VCD... but when making backups of DVDs... as long as you remove all the "junk" (menus, extra languages, subtitles, FBI warnings, etc) the quality is great. If you want all the extra junk... then you can burn that to a second DVD. Or in your case... VCD.

Suggestion: Go to www.videohelp.com and look at their howtos... they have at least a half dozen dealing with different tools for making DVD to VCD.