Has anyone been able to usefully use ArcSoft VideoImpression software, which is provided with Fuji digi cams?

My objective is to burn short video clips I have shot with my Fuji S602 to a VCD, preferably as one single file with titles before the start of each clip. For now, though, I have processed the individual clips with VirtualDub and TMPGenc and burnt the individual files to VCD, which has produced acceptable quality, but as separate tracks, and without the titles.

I've tried using VI to paste a series of movie clips together that I have shot with my Fuji S602, adding titles as above. The quality of the original clips was perfectly adequate at full screen, but the output file from VI was wholly unacceptable - it was excessively blocky.

Of course, maybe I am unaware of how to get the best quality from VI, though I tried saving as both AVI and MPG. I've not come across any other options on the clunky UI that might allow tweaking of the output quality.

Has anyone had better success with this package? Can anyone suggest a better (preferably free) package for pasting video clips together, while preserving the original quality?