We couldn't get PAL VCD burn working in time for release, sorry. You can still create MPEG-1 files for PAL VCD, and you can also create SVCD files with the new MPEG encoder.
I've never been that excited about VideoCD - quality is pretty low since the file is MPEG-1, 352x240. MPEG-2 for DVD is where we've invested the majority of our effort, and we'll continuje to focus heavily on that space.
Is the PAL VCD/SVCD template going to come at some later point then? I assume that since you could not get it out in time, that it must mean that SF must have been working on something?
We already have PAL VCD, SVCD, and DVD render templates, but we do not support direct burning of anything but NTSC VideoCD and Red Book Audio CD from Vegas.
We are considering adding direct burn for all these formats, in both NTSC and PAL, but it is a huge job. There are many cheap/free burning tools on the web that will get the job done, so you might want to consider one of those at this time.