Personally, I'd just make a dvd video. You can make a half D1 resolution dvd video, which would be 352 x 480 in an NTSC standard dvd.
Are you saying that a low res/low bitrate video will look/sound better on dvd, rather than a vcd or svcd?
You'll need software tailored to make a vcd or svcd. Nero Vision can do this for you if you have it. VCD and SVCD are very much outdated formats, and you won't find a great many modern programs that make them.
RealPlayer will do it. I've never used anything Nero, but I will look into Vision if can make a better vcd/svcd.
CDan was warning you to look at your particular dvd player and make sure that it can play vcd or svcd formats.
No prob, I have a multi-format dvd player.
Thanks for your help, Kerry56.