I have just converted the following source file.....................
Image: W 624 H: 416
Duration: 1:13:07
Bit Rate: 95kbps
Audio Format: Mpeg Layer 3
Frame Rate: 29 fps
Data Rate: 156 kbps
Video Sample Size: 24 Bit
Video Compression: Divx Codec
I converted it into a KVCD with no probs, The new file when played on Win. Media player had the audio at 1 min ahead.
Both files after conversion m1v & mp2 were the same length?
When they were muxed they seem to be in sync. beginning and end, but out in the middle.
I've only sucessfully produced a couple of KVCD's so am a beginner, any ideas what the problem is??
Oh I used the cougar pines idiots guide to creating KVCD's method.

It seems that it is an audio corrupt source problem.
Can you tell us all your process step by step. I don't know that guide neither will go to read it now.
Meanwhile, I will say you, that DivX sources at 29 (really 29.970) most times are bad sources.

I extracted audio to mp2 using tmpgen.
Deleted audio using virtual dub.
Encoded video to m1v with tmpgen/kvcd template 352 x 288
muxed with tmpgen.
I also created an svcd with nero (no kvcd temp.) and burned to disc and when i played it on my stand alone exactly the same thing happened, so it seems theirs a prob. with the original source.

I advise you to use another guide, as you said it is not usual.
1 - Extract audio with VirtualDubMod to wav uncompressed.
2 - Learn some about avisynth scripting.
3 - Make a DivX/Xvid avs script. (Look for Dialhot optimal script in DivX/XviD section at forum main page.
4 - Load your template in TMPGEnc.
5 - Load your avisynth script in TMPGEnc.
6 - Do prediction if encode mode requires it.
7 - Encode.
8 - Load wav file in Besweet or Headac3he and transcode to mp2.
9 - Multiplex with bbmpeg (preferable, agree with most people) or with TMPGEnc.
10 - If your source is not corrupted, target a 29.970 file.

If you still have sync problems, it is as I said before: A bad/corrupt source file.

Thanks Predator,
I understand about 50% of that so i need to research on the forums until i understand.
I didn't use the idiots guide for nothing you know.
One thing though, based on the fact i have had 2 sucesses converting to KVCD from an AVI file source, then presumably this is the file source i should be using as a newbie!

VBR Mp3 does give probs sometimes , use Nandub instead of Vdub to extract the audio and try.