Complete VCD n00b needs help with first conversion project

[m4gnesium]

So I have this divx avi I would like to convert to VCD or SVCD. It's split into two files at the moment.

I would have been able to do this myself following walkthoughs I found on this site, but two things about this movie are tripping me up.
1. It's in widescreen format (file properties says it's 640x352)
2. The sound was encoded with AC3 for whatever reason.
Anybody know how to get such a file converted?

Another question: VCD or SVCD? What's this diff? Would I have to use more than 2 CDs if I went with SVCD?

[condone]

2. The sound was encoded with AC3 for whatever reason.

Another question: VCD or SVCD? What's this diff? Would I have to use more than 2 CDs if I went with SVCD?

the reason it was encoded in AC3 is because unless its an uncompressed PCM (WAV file) directly from the master tape, its the best sound your gonna get. Full DVD Surround sound rocks (be it 2+1 or 5+1) anyways, i know that TMPGEnc can handle AC3, but usually if your converting DivX you want to demux the DivX and Audio with Nandub/VDub, in this case AC3 and then convert the DivX AVI in TMPGEnc and then mux it with the AC3. i know that VDUb has problems demuxing the AC3 to WAV (Not sure about Nandub, though i know it handles AC3 so id imagine it can do so) but i wouldnt know for sure as i never make VCD/SVCD out of DivX, too much trouble and loss of quality (though it may look great there is still loss), i just save myself the trouble and get the SVCD as well. DivX was meant to be used on the Comp so i just keep it on Data CDRs.

[m4gnesium]

Grrr....
Trying to extract the audio out to a wav file with Nandub, getting the following errors:
ACM failed to suggest an audio decompression format
AVIOutputWAV: The handle is invalid.

Nandub identifies the audio compression as Unknown (Tag 2000)
Virtualdub is doing the same thing.

I should note that this video does, indeed, play correctly with sound.