You can only create DVD structure files from MPEG-1 or MPEG-2 file.
MPEG-1 and MPEG-2 files can NOT be commixed as the source files. You can only select one format(MPEG-1 or MPEG-2) source files in one creating action. 
You can find some Video Converter software to convert files between MPEG-1 and MPEG-2 format.
You can write to CD-R/W disc with CD-RW driver.
You can write to DVD-R,DVD-RW,DVD+R,DVD+RW disc with DVD-+RW driver.
You can create your own movie disc and play it in DVD player.
VCD format file is a kind of MPEG-1 file.
SVCD format file is a kind of MPEG-2 file.
DVD format file is a kind of MPEG-2 file.
You can burn VCD compatible MPEG files to all supported disc.
You can burn SVCD compatible MPEG files to all supported disc.
You can burn DVD compatible MPEG files to all supported disc.
You can burn any MPEG files to all supported disc.