MPEG-1/VCD vs. MPEG-2?

Greetings!
I have a client who has asked me to convert a SD digibeta to the following spec:
Video Format: MPEG-1/VCD
Stream: MPEG-2 Program Stream w/ elementary video/audio streams
Bitrate: 2.8 - 3.5 Mb/sec
Resolution: 640x480
Aspect: 4:3
Rate: 29.97
Chroma: 4:2:0
GOP Length: 15
GOP Structure: IBBPBBPBBPBBPBBPBB
GOP Type: closed
My question: doesn't MPEG-1 and MPEG-2 conflict with one another?? I don't understand why the format is MPEG-1 and the stream is MPEG-2? It would seem that the specs suggest that they are looking for a MPEG-2 file, yes?
Any feedback welcome!
Thanks!
Jason

I am using Mac Pro with the latest version of Final Cut Studio 2.0 alongwith the decklink hd extreme capture and output card for broadcast application. Recently i have faced the following 2 major problem:
First one,when i am exporting my FCP timeline using compressor to encode MPEG 1 for VCD,the encoded quality was worst and very poor.
Second one,My Boris Text generator tool suddenly disappear.
So,please write me the solution for the above 2 problems at earliest possible because my work has been suffering very much since 15-20 days.And tell me,how do i get the professional VCD quality either from compressor or any other software.

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I recently recorded a concert on my Sony DCR-HC40 camcorder. The majority of the concert was captured to cassette in DV-PAL format (720 x 576, stereo, 48 kHz at 25 FPS).
However, the final third of the concert was captured on the camera's MemoryStick Duo in MPEG1 muxed format (320 x 320 at 25 FPS). The clip is 84 Mb in size.
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mpeg1 footage is only fit for showing on screens no larger than an iPod photo or mobile device?
MPEG1 is usually encoded with low resolution and rather low bitrates so the quality is often rather poor.
However, MPEG1 CAN be encoded with DVD-like resolutions and bitrates so the quality CAN be quite good (MPEG1 doesn't support interlacing like MPEG2, though).
It would be a shame to lose the footage as it was part of a concert of Handel's Messiah.
One option could be to do minimal edits to the MPEG1 with MPEG editors like MPEG Streamclip and burn it as a VCD or DVD (they both CAN have the same video although DVDs rarely use it). Then you'd preserve ALL video quality there is.
...but this won't work with your 320x240 video because the VCD/DVD compatible resolution is PAL 352x288 or NTSC 352x240. So you'd need to re-compress even your 320x240 MPEG which degrades quality.
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Bit Rate: 0.73 Mbps
Duration: 0:16:16
Data Size: 84.79 MB
That's quite low. A DVD uses about 4-6-8 Mb/s and a low quality low res VCD uses 1.1 Mb/s. So your MPEG1 quality can't be very good to begin with.
Audio Tracks:
192 MP2 mono, 32 kHz, 32 kbps
That's very low, too. Even a low quality MP2 often uses 192 kb/s. And the 32 kHz must be resampled to 48 kHz for DV or DVD use.
when played, either via streamclip before conversion, or in QT (I don't have QTPro) after conversion to DV, distorts at quite low levels in a way that a QT movie from cassette does not.
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MPEG2 compression used in video-DVDs will ALWAYS degrade quality. High quality material (such as DV) tolerates this better so you might not even notice it. So you should use high bitrates if you want to convert and burn the low quality MPEG1-converted-to-DV material as a DVD (with iDVD use Best Performance or don't exceed ~70 minutes with Best Quality).
would I need to get Roxio Toast? What is the difference between this and IDVD?
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Basically, what I'd like to acheive is a nicely-edited home movie with titles etc, to put onto DVD & VHS, of a 2.5 hour classical concert, in as good a quality, audio/visually as I can, from the two types of footage, spliced as cleanly as possible. The footage is continuous, but the media changes from cassette to mpeg at a certain point.
Don't exceed ~70-75 minutes with iDVD because after this the quality starts to drop. Toast 7 can burn somewhat longer high quality DVDs than iDVD because it uses compressed AC3 audio so it doesn't "steal" bandwidth from video as iDVD does with its uncompressed PCM audio. But compressing that low quality audio might not be a good idea either!

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