Hight quality as in dvd? It will never happen. The resolution of vcd is half that of best dvd quality is the most you can get. To make vcd it is necessary to convert avi to mpeg1 first and I don't think there is any way around it. Svcd would give you better quality than vcd and for that you need to convert avi to mpeg2 first.
700mb disk give about 1 hour vcd video whereas same disk only give about 40 minutes of svcd.
I am trying to make a cartoon movie and convert it to VCD. How can I achieve a high quality VCD. I have made the animation in Macromedia Flash and has exported it into AVI format without any compression as compressed ones are giving distorted images and I have imported it to Adobe Premiere. Please suggest me compression settings to use and also softwares to use to achieve my needs.