Well as it turns out my DVD player (a Sony DVP-NS700P) does not play SVCDs - only VCDs and apparently XVCDs.
Does anyone have info on producing XVCDs from Vegas? They apparently are capable of being written at a higher bitrate and resolution.
Well they replied the other day to a similar question of mine that XVCDs are not supported. Perhaps Sonic Foundry and Mainconcept will consider changing that restriction if enough people show interest...