For the most part, yes. You need to make sure you switch the encoder to TMPGEnc rather than CCE, switch to MPEG-1 rather than MPEG-2, set the quantization matrix and GOP structure correctly... and then you're set. Unfortunately, DVD2SVCD doesn't support a resize option to 704x480, so if you are using the kvcdx2 templates, you must enable 'Edit script during video encoding' on the tab where you enable smoothing, sharpening, and your resize method. After all the audio is processed, a window will pop up with the AVISynth script that will be used, and you need to replace the resize line and add borders line with what is correct for 704x480. All other common sizes are supported natively.
So beyond a little customizing, it should work just fine!
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