Yep, KVCD is a complete fuck to try and encode, none of guides really help, and are out of date, and when you get to the end just b4 encoding, i get errors in TMPGEnc whe using a script. you could use cce i think ?
I've found that the KVCD matrix is nearly the same as CCE's Ultra Low Bitrate matrix. In the little bit of testing I did I found CCE's matrix to give me slightly better results. In order to use a custom matrix you need to have CCE Pro because CCE Basic doesn't allow you to add your own.
Seeing/replying to this thread, made me try KVCD again, and i finally got everything working, i got a 93 min film on to a 80min cd, and it looks better than any VCD i would normally make.
