Your system is fine although an additional HD would help as the I/O load could be split.
As I posted I use Tmpgenc for VCD/SVCD but for movies I use DVD2SVCD, which some people find too complicated but it isn’t really.
It comes with a front end (D2SRoba) & a freeware encoder. I use Cinema Craft Encoder SP 2.5 (CCE) with it.
The D2SRoba front end enables quality DVDs to be produced quite quickly by sampling so that rather than CCE doing 4+ full passes to get high quality it only does a few quick samples (takes maybe 10-15mins) & then 1 full pass. Total time on my XP2800 would be about 4 hours.