ok, here's what my friend told me. You've basically got to get the video in mpg format and use a program such as Nero burning Rom to burn it as a video cd. That's all he did. Nero will tell you if the video is compatable or not. You can re-encode the file with a program called TMPGEnc into the proper file format. Apperently that can take a very long while. he told me it can be around 8hrs for a 2hr film.
Hope that works for you.