You may reduce the video down to 1/4 size but you dont do that with the audio. An AC3 5.1 sound file for 60min of movie can be 250-300meg in size, doesnt leave much on your CDR for video !
But as C_D said, there are not many DVD players that can play then. Make one and test out yoiur player, thats the best way.
DVD2SVCD can be used, just select in the Frameserver Tab the Resize to VCD(352x240/288 and leave all other settings as per the Tute.