If you wish to view this file on your PC then use a media player called VLC which supports Cue and Bin format movies but be warned, this and Windows Media Player have been known to show incorrect movie runtimes i.e. 37 minutes when the movie is actually 2 hours long. You can download the VLC media player from
www.videolan.org but it's NOT recommended to view KVCD's on your PC as they're specifically encoded to view on your standalone DVD Player and TV.
To burn to disc using Nero just right click on the cue file which will be the smallest of the 2
then choose Open With and browse to your Nero.exe (possibly just called Nero) file. (Located in Program Files / Ahead / Nero folder) Ensure the *Always use the selected program to open this type of file* box is ticked, this way next time all you have to do is double click the cue file and the burning interface will open, now choose which speed you would like to burn your disc at. It's recommended to burn at no more than 8x, if you burn at a faster speed this may impair the quality and make the video pixelated.
Hope that helps.