Are your source mpeg2 files good in the first place? Have you tried burning to an image file and then mounting that file in Nero Image Drive to ensure you are not suffering from a media problem? Did you try VCDEasy like I suggested?
You have to give us something to work with here. For example, when we ask what settings you are using and you just reply "i think i have everything right ", that doesn't tell us anything. Maybe you don't have everything right - isn't that why you came here in the first place, to find out about possible problems with what you are doing? This is a two-way street. No one will be able to help you if you aren't willing to give us information about what you are doing. We can't read minds here...
cfitz