Upto 800Mb is possible on a 700Mb CD using the VCD format. Why? Because error correction isn't used. Write the CD in MODE2 Form2.
Strange no one else on these forums ever observed/commented/been aware of this.
I remember, back in the old days I used VCDEasy for authoring (I even remember publishing a bug fix and being featured on their website

.) Try this software for your VCD problem.
Also have a read through this -
http://www.gromkov.com/faq/burning/cdrom_capacity.html
-Keith