Followed the instructions for burning with Nero. I'm trying to burn a mp2 movie on SVCD with no luck. I did get the nasty window that pops up noting the mp2 capatability issue. I ignored and went on. Any thoughts on how to get this to work.

Yeah first off don't ignore Nero warnings ;)
Second, use TMPGEnc to convert the MPEG2 to SVCD, here's a tutorial (http://www.vcdhelp.com/tmpgencsvcd.htm)
Just make sure you load up the appropriate SVCD template (PAL or NTSC).