I have captured PAL DV (720x576, 25.000 fps) and got a video clip of 16 seconds total of 60,611kb.
This is the way Gspot identified the file
--> {DV Video Decoder}
{AVI Draw}

I tried to encode this file with temgenc to mpeg-2 and received a file size 5,618kb. The file has no video only sound (I see black screen)

This is the way Gspot identified the file

DirectShow partially succeeded to play file. The actual text of the error or warning is:
0x00040242: VFW_S_PARTIAL_RENDER - Some of the streams in this movie are in an unsupported format.
The following combination of filters were used:
{C:\Documents and Sett..-..04 to Kineret 011.mpg} (Video Source)
{Elecard MPEG2 Demultiplexer} (Video Splitter)
{Elecard MPEG2 Video Decoder} (Video Decoder)
{Subtitle Mixer} (Video Post-processor)
{DivXG400} (Video Post-processor)
{Video Renderer} (Video Renderer)

While using Temgenc there was a black screen as well.
Basically what I am trying to do is capture, encode to Mpeg-2 and burn with nero SVCD
What am I doing wrong?