Mpeg 2 Sfd?

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Well, as far as I know the SFD-Format consists of an M1V (MPEG1-Video-only) Stream and an ADX-Audio Stream. They are multiplexed to an SFD-File. While normal MPEG1 uses M1V+MP2 Streams. So there is basically not such a big difference to the VCD-Format, besides the bitrate of the Video and the codec of the Audio (ADX instead of MP2).

What you'd have to do is demultiplex the MPEG1 video you have and convert the Audio. There is a tool called Wav2ADX, that you can use after you converted the MP2 Audio from the source MPEG to Wave. I don't know if you should also change something about the video. I would first of all take a look at an original SFD and find out the resolution it uses (I suppose 320x240 but not sure).
An SFD can splitted to M1V and ADX with Mpeg-VCR 3.

Finally you would have to multiplex your M1V-Stream + the ADX to an SFD, using DCMovieCreator. I heard it doesn't work on WinXP, but I never tried.

That's all I can tell you.