not quite sure what u mean by ‘legal’. Well, it’s not a official format if that’s what u r asking. I’ve bein using these templates for a while and they produce pretty good results, although there was a big debate on this at www.videohelp.com. The videos when encoded use variable bitrate, unlike vcd which use constant bitrate. Also the GOP structure has been modified and other things.
It really depends on your taste and if your dvd player can support play these somewhat xvcd templates. There is a guide on their site, although some parts of the guide is outdated and you might need to adjust it. I usually use avs scrips in conjuction with it, but as a beginner i recommend you to just stick to the basics and then move up eventually, like how i did it.