I have been doing kvcds for a while now but have run into this problem. I am using the latest script as posted in the script section. And my encoded kvcd's have a white sort of lines or dots in the right hand corner of the video these appear throughout the encoded file. Can somebody shed some light on this please?

Please do post a screenshot so we can see ...

Sounds like a problem with resizing. Use Fitcd to get resize values.

You are simply using "Elencard MPEG2 decoder" as mpeg2 codec. This codec is not free and it adds a watermark in the right hand corner (4 little squares, 3 whites and one black if I remember well).

Don't worry, the watermark isn't encoded intot the video, it is just displayed during playing.