The VCD format will normally give lower video quality, than other formats.
This article will help explain the advantages/disadvantages of the different formats.
It also has links to different conversion guides, most of which, use free software.DVD Conversion Guide
SVCD might be a better option for you.
It allows for better resolution, and you can get up to
94 minutes, on a 650 MB CD.
If you want to go the, DVD to VCD conversion route, here's a guide that uses free software:DVD to VCD Conversion Guide