IM FAIRLY NEW TO THIS..BUT I HAVE BEEN RIPPING VOBS THEN CONV TO D2V THEN TO MPEG 1 AND 2. HOWEVER, NO MATTER WHAT SETTINGS I USE THE FAST ACTION SCENES ALWAYS APPEAR IN SCATTERED BLOCKS AND FUZZY WHEN IM WATCHING THE FINAL PRODUCT...WHY IS THAT?
Yeah, VCD has limitations and those can't really be circumvented. Only way is to use some noise reduction filters that smooth the picture or to change to SuperVCD as a format (but then again, you need 3 CDs for each movie when using SVCD).
Use our VCD ripping guide (from article section), but when using TMPGEnc, use SuperVideoCD template (select correct format, NTSC, PAL or NTSCFilm), go to settings, change encoding to 2-pass VBR, set good bitrate values (0 to minimum, appx. 2000 to average and maybe 2500 or 3000 to max).