Yes, You can. But quality is

Do following step:

1. Copy the MPEG-1 file in the DAT folder of the VCD compact disk to your hard disk.

2. Change the file extension to .mpg

3. Add the file to ULead video library

4. Add the clip to story board

5. Do whatever editing you like

6. Select finish -> Create DVD NTSF (or PAL)

7. Following the instruction and in a hour or so, you are done!