I googled "vcd to mpeg" and found a couple of programs you could "buy".
http://www.videohelp.com/forum/userguides/141726.php
http://www.soft32.com/download_81016.html
Another search could probably turn up more than just those.
Here is a guide for vcd to DivX also.
http://nickyguides.digital-digest.com/vcd-2-divx.htm