check it out. SVCD codec
SVCD is a new video format which provides better quality then regular VCDs. SVCDs utilize the MPEG-2 codec (same as DVD movies). While the compression isn't as good as what you can achieve with the DivX codec, this format has become popular because it's possible to view burned SVCD movies in many stand-alone DVD players. If you want to watch SVCD movies directly on your computer you first need to install this codec. After you've installed the SVCD codec on your computer Windows Media Player will be able to play SVCD movies.