i didnt get the whole kvcd thing but then i encoded a movie with a kvcd template whcih i forgot i have...well i converted the .avi and it gave me a .m2v file...what do i do with that file????

You have an elementary video stream. You need now an elementary audio stream. I mean an mp2 audio to multiplex with your video. For this, just open the avi with VirtualDub (VirtualDubMod, Nandub, etc). Select menu - audio - full processing mode. Then select File - Save as wav, choice a name and accept. Once you have an wav audio, convert it to mp2, 44100khz with besweet or headac3he. For last, multiplex yours audio and video elementary streams with bbmpeg. Better bbmpeg settings for KVCD here http://www.kvcd.net/forum/viewtopic.php?t=2224. For KSVCD (like yours, I think for the extension m2v) just select SVCD and put forced mux rate = 0.
Another way, like I always say, is take your original DVD (if you still have it), rip the audio, convert it to mp2 with besweet or headac3he and multiplex like I as said before.
Maybe this post, it cuuld be better posted in AVI(DivX, XviD, MPEG-4) to KVCD/KDVD thread. Be alert!