You can copy the media file from the VCD and rename the file extension from .dat to .mpg and it should play OK in media player. However if you wanted to burn this file to another VCD then you might have problems with the audio. The best way I've found is to download a small utility called dat2mpg and convert the .dat file back into a "proper" .mpg.
If you only want the video part of the file then BJ M's suggestion of demuxing using TMPGENC is good.
hmmmmm wow ya'll really have knowledge on this subject. actually I want to take pieces of the video(and audio) and put together a short summary of the vcd in a totally different format like real media or something? What's the best way to extract the vcd so that the extraction contains the video and audio?