Yes I'm new to all this but I've done quite a bit of reading, searching and trying different apps.

I can capture the video using any number of applications. I have tried Ulead Video Studio using the built in capture/convert/burn to VCD format. After many attempts I seem to have a large pile of coasters now. I know the trick is to convert the high-quality raw DV .avi file to an mpeg file.
One question would be which mpeg format (layer 1 or 2) is needed to burn to VCD using Roxio Easy CD Creator? I have tried taking the raw DV file (an .avi file created using Windows Movie Maker, Adobe Premier or Ulead) and used the TMPGEnc app to covert it to an mpeg file . . . without fail, the mpeg file has sound but no video. . I've tried almost every option (and read the guides) and still no dice.

Does anyone have a definitive method (and fool proof - because I'm obviously an idiot since I can't figure this out on my own) of capturing video from a Sony DCR-TRV320 digital video camera and making some fancy mojo on it to make a nice VCD compatible mpeg file that I can burn to a CD, so I can watch it in my DVD player (which IS capable of playing VCDs)?

One thing I HAVE found is the demo version of Panasonic MPEG2&1 Encoder makes video (below average quality - with pesky watermark) but very lousy sound. I have tried separating the sound into a wav file and creating mpeg from separate a/v files but the sound comes out the same - higher-pitched, tinny and sped up a little, and so has the video - sped up I mean. . .and when I tried to burn it to CD, the DVD player wouldn't recognize it.

Any advice at all would be greatly appreciated, I'm about to trade in my PC (witch by the way is a P4 1.7Ghz 512MB RAM 2x40GB HD with firewire ports) for a free lunch at the local soup kitchen. . .