I have toast Ti. Not free, but I have never had a problem with it. Great program. You might be able to get it cheap now, it's a little older. Look on eBay.
i looked into making vcds not too long ago. its real tough to go completely free (though possible). if you google around for making vcds with gnu/linux, and if you are familiar with configuring, building and installing source packages, you should be able to go through it. a couple of relevant programs come to mind: cdrecord (a cd/dvd burner) and ffmpeg (conversion utility among many video and audio formats). theres also a few more which take in the movie, and output an iso (which is then used with cdrecord).
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