Have you been able to solve this yet?
If Darvie's method doesn't work, use a program called "VCD gear".
That program kicks ass.
I would give you a link to DL, but I'm at work and I haven't uploaded that program to my host yet. BUT, if you happen to find it online before I could provide it for you, here's a tutorial I wrote up for it.
-Open up VCD gear exe program.
-Make sure to check the box, "Fix error" or something like that.
-Select DAT to MPEG.
-Select the file you want to convert from the VCD.
-If the converting suddenly stops at 98%, just hit stop. The file will still have been done converting anyways.
-After you convert it to MPEG...select MPEG to MPEG and convert that MPEG file u just converted to fix any error.
Questions?