Here is the settings I use:

Capture:

I use VirtualDub. I dont use Huffyuv video compression because it takes too much HD space. (around 17 gigs for a movie in 352x240). Instead I used DiVX "1 pass quality base" and I set the quality to 100%. So:

For VCD: 352x480 DivX "1 pass quality base" , quality 100%
For SVCD: 480x480 DivX "1 pass quality base" , quality 100%

Conversion:

I use TMPGEnc PLUS. Since my DvD player can only read SVCD that have a maximum bitrate of 1900, I dont make SVCD cause at that bitrate they have mpeg artifacts (blocks, pixel patterns). Instead I made some kind of mixed between a SVCD and a VCD. I convert to 352x240 mpeg-2 "2 pass VBR:

My own format: 352x240 mpeg-2, 2 pass VBR (250 / 1350 / 2400) with reduce noise and ghost filters.

For SVCD I would use: 480x480 mpeg-2, 2 pass VBR (250 / [1500-1800] / 2520) with reduce ghost filter. (you can try to add reduce noise, but the convert could be has high has more than a day...)


But i am a noobs at this, I wonder what settings other people use...