Tools: Get Nero 5.5+ or get the demo here.
Launch Nero.Close the Wizard. Select File->New, then Select VideoCD (select Super Video CD to create a SVCD) and click New.
1. Locate your .mpg and drag it.
2. Check the time. It should be exact the same as in the movie.
3. Rename the CD to anything you like by clicking F2 on NEW.
4. Select File->Write CD.