VCD's use Mpeg1 video at 1150Kbps. It is a very lossy format and the bitrate is low. So (unless your source is of very good quality) you will end up with crappy looking output when re encoding with Nero.
i.e. unless you have the time, money, patience and effort required to re encode using CCE or TMpegEnc (using multiple passes and codec optimisations).
Anyway, what looks crappy on a computer monitor should look fairly decent and watchable on a TV. Except for fast motion and complex scenes where the video would end up blocky.
You could try SVCD template in Nero. But make sure your "frnds and relations" have players capable of this format.
You could buy yourself a DVD burner and author your files to DVD video.
You could buy your "frnds and relations" DivX DVD players,

and while your at it, get one for me too
Keith