Sounds like you aren't rendering to the right file type.

Ulead's DVD Movie Factory accepts MPEG-1, MPEG-2. To make a VCD you use MPEG-1 and select the appropriate template. It is VCD NTSC in Vegas, should be the same or similar in Video Factory. Remember also to select the proper type in DVD Movie Factory. When you pick the correct one, it will load and show a thumbnail of the first frame along with file information and you will be able to play it in DVD movie factory.

First render in Video Factory as a MPEG-1 file type using the VCD NTSC template.

Open DVD Movie Factory. Click Authur Menus, New Project, Next. Click on the add MPEG file button. Locate the file you just rendered in Video Factory. Open. It should drop a thumbnail of the movie into the work area and show file details. If you get an error message you didn't render it correctly in Video Factory or you picked the wrong type button in the previous menu. Once you see a movie drop in, repeat the process to add other MPEG-1 files. Note that the space required on hard drive is roughly double the space the file will take up on the CD.

Click the next button. You should see a little player and a thumbnail of the first frame on the right. Move the little red line (the scrubber underneatht the preview window at far left) to advance in the video until you see a frame you like and want to use as a break point. Click Add. Repeat as much as you want.

When you are done adding scenes click next. You'll see the scenes you picked on the left, template choices on the right. Double click on the template selection you want.

Under each thumbnail you'll see yellow text. Type in a brief decription of the thumbnail. Work your way through all the scenes you added.

At the very top you'll see Title Track. If you've added multiple MPEG files, select the next one and repeat the process of picking thumbnails, a template and labeling. You can use the back button if you make a mistake or want to switch positions of the different video files. They play on the CD in the order to place them, left to right.

Once done picking scenes and labeling, click next TWICE.

Confirm the CD burner is set correctly and that you have enough free space on the drive shown at the top, roughly double the size of the CD max. Click the create button and it will start the burning process which varies in the number of steps depending on if you're burning VCD or DVD. To Burn SVCD you'll need to render in Video Factory with the optional MPEG-2 encoder or use a third party application.