the program that most use is Virtual Dub, its on sourceforge.net its free and its very intuitive...check it out! B)
sorry did you mean vcd or mpg format ready for vcd? if its already literally a vcd im not sure what to use as its also pretty low quality and not good for recompression...if its just mpg format then go for virtual dub
The only 'funky' thing with a VCD is that it may have more than one .dat file and a menu interface to choose which one to play ... its only a static image thats somewhere on the cd anyway. Nero or any other decent burning software will do the indexing and chapters for you... if you *really* want them.
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