The standard device for making VCD is
http://www.tmpgenc.net/. I have never used it for DVD ripping and I am not sure if it will handle VOB files. If it does not use
http://gordianknot.sourceforge.net/to rip it to AVI and then use TMPGEnc to make a VCD out of it. There will be a little quality loss each step but since the DVD->VCD is a huge step backward you will not notice the loss of quality of the added steps as much.
Make a note however that VCD does not support wide screen and you must either cut out a part of the screen to make it 4x3 or add bars to the top and bottom to make it appear wide screen on a 4x3 set.