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The "CVCD" is just (yet another) name for a particular template that creates a non-standard VCD (in so being, it is a particular form of XVCD).
It is quite similar to Sefy's template ("SeVCD") which you can find here on this site.
There was a lot of hype about "CVCD" in a thread a while back... Needless to say, claims of 2hr+ at lossless DVD quality are bogus. However, you can probably get some quite pleasing results but you will have to experiment to see if it is to your liking.
Regards.Michael Tam
w: Morsels of Evidence