Nero 7 ultra SVCD & VCD option?

Hi !

Just wondering that if I use the nero 7 ultra SVCD/VCD option and drag a divx/xvid file into it … will it convert it so that once burned it will play on a DVD player… I hope there is no hassle for region stuff … I want to create region free SVCD/VCD’s … do I have to change any settings or the default is fine for region free SVCD/VCD optionalso is there any loss in quality of media when I convert from divx/xvid to SVCD/VCD…I did see that an SVCD takes less size than the actual divx file by itself ??? so is this a good option ???