It is the overall formate, like 1.4 mb floppy and a 700 mb cd. or the 500 kb floppies ( if you remember those, now I am showing my age!) It is a formate thing,
But you can coverte a dvd to vcd. You need a dvd rom and a cd burner, Copy software that can make a vcd. There are a lot of guides out there that can help, here are a few, try the thrid one first.
http://www.bxbweb.com
http://www.divx-digest.com
http://www.vcdhelp.com/dvdtovcd.htm