WinXP: Steps to move video from VCD to DVD:

1) Change *.dat files in mpegav folder of the VCD to mpeg (mpeg1) files: use vcdgear.exe
2) Compile the mpeg files created in Step (1) to a DVD: use DVD Flick (sourceforge.net). Remember to write as NTSC (all readers cannot read PAL).
3) Write the compilation to a DVD: use DVD Shrink (reads the DVD created above and writes it to disk).

VCD Menus are lost this way and custom menus can be added to the DVD. There are some DVD Authoring tools available to do that but I have not yet been able to get one that suits my needs.