I have successfully (I think) created a SVCD witn NERO with MPGE2's created with TMPGEnc. My DVD player which says it is SVCD compatable thinks the CD's are MP3's ( It gives me a directory structure but won't display the directory contents).
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try burning instead of an SVCD, an VCD with the MPEG2 file you got there.. that should work(without quality loss)
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