Well after digging through possible solutions and other ways to get this to work I finally found a fix.

I burnt a SVCD out of home movies with probably 10 different SVCD encoders (including the latest Ulead DVD factory) and each time I play them, they skip (or pause). I went to circuit city with my cd's and they skip their too. I was ready to pay big money for a dvd that would work as I thought they were all flawed.

What I found out was that all SVCD are encoded via a variation up to 2500 kbps.

So I used the DVD factory encoder (I'm sure any will do) and created my own encoding.
480X480 (standard for SVCD) and encoded it at a constant 2500 KBPS. I tested this on my DVD (JVC 65 something) and on other makes at Circuit city. It worked beautifully. Even worked on one of thier models that costs only $149.

Good luck, and email if you have any questions with burning SVCD's. I have alot of practice now.