Help, my VCD are blocky/pixelated looking and the sound if some what off, how can I fix these???

Computer: Compaq 5000 (5BW160), Pent III. 700MHZ, 128SDRAM, 20GHD
Capture Device: Dazzle DVC (USB Version)
Edit Software: Ulead Video Studio 4.0
Burning Software: Click-N-Burn Pro

How can I creat good quality VCD's to be played on DVD players??

I will be upgrading in the future to a Sony TRV-230 camera and Pinn Studio Version 7. Is anyone familiar with these? Have any comments?