Thanks black prince, you may also add this link:
http://www.geocities.com/ymotiwala/ympeg.html
YMPEG Supports : MPEG-1, MPEG-2, VCD, SVCD
Special feature of YMPEG is that it can integrate itself with Windows and offers seamless encoding from your favorite applications. Thus
providing simplest way to encode without creating any intermediate file or using frameserve.
As far as I know, currently YMPEG is only freeware MPEG codec to offer this feature.
Special requirements: SSE Support
Sample instruction on using YMPEG with VirtualDub is give on website.
Regards,
Yusuf