Creating VCD using Ulead Video Studio 4.0

I want to make a NTSC-VCD (mpeg-1 format) using the Ulead Video Studio 4.0 that i have.
The movie i have is for an hour and Ulead VS 4.0 produces in AVI format which runs into 10 GB of hard disc space. I am trying to directly encode it in mpeg-1 format so that i can convert it into a VCD.

I know i can produce this VCD using Nero which will convert the AVI to mpeg-1 while burning the VCD. But i want to create the VCD directly as mpeg…not from AVI to mpeg.