I suppose you already have the VOB set; if not, you need to rip DVD --> VOB set on your HD; for doing this, you should use a better Decrypter that Smartripper, which is not being updated since 2002 (last existing version of DVD Decrypter is of year 2005).
Please note that you'll neet TMPGenc Plus to be able to load MPEG-2 files, that is the DVD.
Load the ripped VOB set with DVD2AVI (F3). Take care to choose the right audio trace , choose audio___decode to WAV, and save (F4).
In few minutes DVD2AVI will create a D2V file, a 'pointer' which is treated like the audio (apart the fact it hasn't audio).
Now TMPGenc (or even CCE and others, if they can use DVD2AVI's frameserving capabilities) will load the VOB to make a (S)VCD mpeg.
The audio can be loaded separately as external audio file by the encoder (TMPGenc is the easiest to use).
