Mulitpass VBR SVCD is always blocky

Maybe someone can tell me what im doin wrong but in either CCE or TMPGenc my VBR svcds come out blocky. I've captured some vidoe in VD with huffy at 640x480 using AIW128 pro. If I use CBR or single pass VBR in CCE the video looks good. Havent messed around too much with all the settings, just followed some of the guides. Hopefully someone has some advice for me.

[Truman]

Strange. Did you use the same average bitrate, that you used as constant bitrate?

[Taavi]

I have just encoded an svcd and for the first time i used the VBR setting to see if it looked better. The constant and average bitrates used were the same and i was disappointed to see how blocky the product was. The blockyness however did really only stand out in the darker scenes. Especially the close to black colored items. Any ideas?

Taa

[Truman]

The encoder allocates more bits to the high motion scenes and save bits at low motion scenes. That's why a low motion scene with dark background may look more blocky than encoded in CBR mode. High motion scenes might look better, isn't it?
You will notice this problem, if you used TMPGEnc. Generally TMPG is not the best choise, if you want to encode @ a average bitrate lower than 2000kbps.