This last step is done from Roxie Platinum or nero 5.5... When you choose the burn process, you pick you want a vcd. As for the second part of your question. The svcd, has better quality. If you are backing up your dvd's to vcd's, well, then the quality is going to be a little reduced anyhow. I can not really see the difference by my eye on the TV when both are played. There is more space required for a svcd as well. On average 200-500 mb, I know this is a wide range, but that would corrispond to the dvd's that range from about 4.5 - 7 gig dvd's. Hope this helps.