TMPGEnc error: can not be used as external encoder

[tjd17]

NEWBIE ALERT!
I get the error 'can not be used as external encoder' when trying to use TEMGEnc on an AVI file that I captured from an analog video recorder on my 1.2 Ghz/256 mb RAM PC with ATI ALLINWONDER Radeon card using ATI's digital VCR software. I am completely new to TEMGEnc and used some suggested settings I found on this site. The only reason I am using TMPGEnc is that I'm trying to create better quality VCDs of home movies to play on my DVD player. I can capture to vcd mpg files (again using setting from this site), and burn to VCD using Nero 5.5 (again using settings from this site----PS thank God for this site!!!!!). The mpg file looks fine when viewed on my PC, but when I burn it to a VCD and play it on my DVD player-the quality is worse than VHS-picture is not sharp, even when there is not much motion.
HELP!!!! If I can't get the quality improved, I've wasted money on the capture card. Thanks!

[Truman]

Go to option> enviromental setting> external tool.
Is there any box checked, but no .exe file selected?

[tjd17]

Truman:
You are correct. Checked, but no EXE. What program should be listed?
Thanks for the response!

[Truman]

At that tab you can define an external audio Layer-2 encoder like tooLAME,an external Layer-3 encoder like LAME and an external sampling frequency convertor like sscr.
Although is is a good choise to use sscr and toolame instead of TMPG downsampler/encoder, it is not necessary to check one of these boxes at all.
Just uncheck all boxes.
Later you may play around with the audio quality, then install tooLAME, check "Layer-2" and browse to toolame.exe.