You have two options here, you can use VCDEasy or VCDGear. Both are covered. If you have never used either before then you might find VCDGear a little more easy then VCDEasy, but since we will be using VCDEasy later on to burn the VCD (or create image files) you might want to use it now to get a bit more used to it. I'll leave it completely up to you.
Ripping with VCDEasy
When you first open VCDEasy, it looks a bit strange. But all we are going to be doing here is converting a DAT file to an MPEG file. Click Tools --> MPEG Tools. At the end of the program now is a program called CDXA2MPEG (see pic with this text). In the DAT field, browse to your CD and go to the MPEG2 folder. Select AVSEQ01.mpg and click Open. Now in the MPEG file field, select somewhere to save an MPEG file. Now click Convert and after a couple of minutes the file will have been ripped to your HDD. In some cases, there will be more than one file in the MPEG2 folder on the CD. Check these files with DVD software to make sure you are ripping the right files. If you have multiple files in there that are all part of your movie, then you will have to use some sort of merging software first to merge the files together as one. Remember if your movie is on multiple CDs you will have to repeat this step for each.
Ripping with VCDGear
Some people prefer to rip with VCDGear. First select dat -> mpeg conversion. Whether or not you tick Fix MPEG Errors is up to you, I always select it to be safe. Now click the load button and browse to the MPEG2 folder on CD. You wont be able to see the file because it's extension is .mpg so you will have to change File Type to All files. Select AVSEQ01.mpg file and click open. The program will now ask for a location to save an MPEG file. When you have that done, click the start button. There may be more than one file in the MPEG2 folder. Check the files with a Software DVD player to make sure you rip the right files. If you have more than one file in there that is part of your movie, you will have to find some software to merge them, TMPGEnc can do it (file - mpeg tools - merge and cut) but its not covered in this guide. Remember if your movie is on more than one CD which it really should be, then you will have to repeat this method for each CD.
After Ripping
After you have Ripped the file(s) to your HDD, the next step is to use TMPGEnc to encode them to VCD, but before we can do that, we have to setup two external encoders and the m2v plugin with TMPGEnc. Just so we are clear, if your SVCD is more than one CD, then you will have to repeat the above method again after you have encoded the first CD, for the second CD and third etc.. There will be no merging files in this guide, if it came as 2 SVCD's, then its going to be 2 VCD's.