error with encoding

[hazchem]

hi i get this error while trying to encode from divx to mpeg to make a vcd using xingmpeg
The video data rate is too low to encode this file. Try encoding again using a profile with a higher video data rate.
this is the profile of the file
audio format: MPEG Layer-3,128 kBit/s, 48,000 Hz, Stereo
video format: 352 x 288, 24 Bits, 115642 Frames, 25.000 Frames/Sec, 142 KB/Sec, DivX codec

this is the profile of the encoding
system: mpeg1, videocd, 2324 pack 1394.40 kbits/sec
video: mpeg 1, 352x288, 25 frames/sec 15/3 IPB 1150kbits/sec
audio: mpeg 1 (L2), 44100 Hz, stereo 224kbits/sec

can anyone tell me why i get the error and how can i fix it?
icq me 3252008 or email me hazchem@weedmail.com
plz help me

[KingJohn]

Video-CD PAL (MPEG-1 352x288 25fps CBR 1150kbps, Layer-2 44100Hz 224kbps)

Is how it should be, Sorry I use TMPGEnc and load a VCD template, Not tried xingmpeg.