Do you lose image quality by doing this?
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Yes, you will loose quality.
SVCD is 480x576 lines. The total bitrate can be (normally) up to 2750. It can have a minimum bitrate and a maximum bitrate (max for the more complex scenes) It also has an average bitrate, which is between the min and max.
VCD is 352x288 lines. (less lines, less quality) The total bitrate is max 1375. This is a constant bitrate, meaning: the bitrate will not increase when there is a more complex scene, and sometimes macrobloks are visible.
These are standard settings. You can create X (S)VCD's, but then your standalone has to support this. (and when you have to replace it after a few years, you will have a problem)The Dutchman
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