Below is what I use which is from DVD2SVCD. I did some looking and found that AVIsynth should default to black as I understand it. But what I get is light grey. Any help is appreciated.
[Settings]
XPos=0
YPos=0
UseDVDRip=0
UsevStrip=0
UseInternalRip=1
Save diskspace=0
vStrip Executable=C:\Programmer\DVD2SVCD\vStrip\vStrip.exe
vStrip Folder=C:\Programmer\DVD2SVCD\Movie
DVD2AVI Executable=C:\Programmer\DVD2SVCD\DVD2AVI\DVD2AVI.exe
DVD2AVI Folder=C:\Programmer\DVD2SVCD\Movie
iDCT=0
DVD2AVI Pause=0
WavConv=5
BitRate=9
tooLame Mode=0
Audio Folder=C:\Programmer\DVD2SVCD\Movie
Autodetect Azid Gain=1
SubMux Executable=C:\Programmer\DVD2SVCD\WinSubMux\WinSubMux.exe
MPG2Dec DLL=C:\Programmer\DVD2SVCD\MPEG2Dec\mpeg2dec.dll
InverseTelecine DLL=C:\Programmer\DVD2SVCD\InverseTelecine\Donald Graft\decomb.dll
SimpleResize DLL=C:\Programmer\DVD2SVCD\SimpleResize\SimpleResize.dll
CCE Folder=C:\Programmer\DVD2SVCD\Movie
NoOfpasses=4
CCE Image Quality=17
CCE Anti noise value=2
CCE Anti noise=0
CBR=0
One Pass VBR=0
Multi Pass VBR=1
Dont Delete Files=1
Create VAF=1
QFactor=5
Linear quantizer scale=1
Zigzag scanning order=1
Pulldown Executable=C:\Programmer\DVD2SVCD\pulldown\pulldown.exe
Pulldown Folder=C:\Programmer\DVD2SVCD\Movie
Use2Streams=0
Pri1Audio1=28
Pri1Audio2=-1
Pri2Audio1=-1
Pri2Audio2=-1
Sub1=-1
Sub2=-1
Sub3=-1
Sub4=-1
Sub5=-1
Sub6=-1
Sub7=-1
Sub8=-1
Azid Gain Offset=6
Rip subtitles=0
Subpictures Folder=C:\Programmer\DVD2SVCD\Movie\subs
Min. Delay. Between Subtitles=100
SVCD subtitles=1
BeSweet Executable=C:\Programmer\DVD2SVCD\BeSweet\BeSweet.exe
MPEG51 Executable=C:\Programmer\DVD2SVCD\MPEG5.1\pub_enc.exe
Permanent subtitles=0
PAL Y-Pos=-1
NTSC Y-Pos=-1
MinsHigh1=50
MinsHigh2=76
MinsHigh3=100
MinsHigh4=125
MinsHigh5=163
NumCd1=1
NumCd2=1
NumCd3=2
NumCd4=2
NumCd5=3
NumCd6=3
CDSize 1=740
CDSize 2=800
CDSize 3=740
CDSize 4=800
CDSize 5=740
CDSize 6=800
MaxBitrate=2530
MinBitrate=300
MaxAvg=2230
MinAvg=1600
Adjust Audio Bitrate=1
Use Min. Avg.=0
Force Film=0
bbMPEG Executable=C:\Programmer\DVD2SVCD\bbMPEG\RunbbMPEG.exe
bbMPEG Folder=C:\Programmer\DVD2SVCD\Movie
Movie Offset=2
CDOverlap=2
I-Author Folder=C:\Programmer\DVD2SVCD\Movie
Data Preparer=dvd2svcd
VCDImager Executable=C:\Programmer\DVD2SVCD\VCDImager\VCDImager.exe
VCDXBuild Executable=C:\Programmer\DVD2SVCD\VCDImager\VCDXBuild.exe
Use I-Author=0
Use VCDImager=0
No images=0
Use VCDXBuild=1
Title Picture=C:\Programmer\DVD2SVCD\DefaultTitlepicture.bmp
Change CD Picture=C:\Programmer\DVD2SVCD\DefaultChangeCD.bmp
Length of Chapters=60
Use TitlePicture=1
Use ChangeCD Picture=1
Avisynth Bicubic b Value=0
Avisynth Bicubic c Value=0.75
SmartDeinterlace Mode=2
SmartDeinterlace Treshold=10
SmartDeinterlace Denoise=1
SmartDeinterlace Blend=0
SmartDeinterlace Fast=1
Edit Avisynth Script file=0
UseAVI2SVCD=0
UsePVA2SVCD=0
UseDVD2SVCD=1
PVA Executable=
PVA Folder=C:\Programmer\DVD2SVCD\Movie
UseCDOverlap=1
Wave Length Adjust Executable=C:\Programmer\DVD2SVCD\WLA\WLA.exe
FirstRun=0
MADPlay Executable=C:\Programmer\DVD2SVCD\MADPlay\madplay.exe
Use CDMage=0
CDMage Executable=
RunPerCDImage=0
RunPerCDImage Executable=
RunFinal=0
RunFinal Executable=
RunPerCDImage Params=
RunFinal Params=
bbMPEG videoDelay Adjustment=180
bbMPEG audioDelay Adjustment=180
bbMPEG audio1Delay Adjustment=180
Use MPEGAV=0
FixedChapters=0
DVDChapters=1
ForceIAuthorSupport=1
TMPGEnc Rate Control Mode=2
Subtitle DLL=C:\Programmer\DVD2SVCD\Avisynth Subtitler.dll
BMP Loader DLL=C:\Programmer\DVD2SVCD\Avisynth BMP Loader.dll
VFAPI Executable=C:\Programmer\DVD2SVCD\VFAPI\Reader\VFAPIConv-EN.exe
ResizeMethod=2
Auto Intra DC=1
DC component precision=0
Avisynth Setup=BicubicResize
UseMPEG1=0
UseMPEG2=1
Convert to Canopus codec=0
Convert to Divx4=0
Use Frameselection=0
New Default Folder=0
DVD2SVCD Level=0
Eject DVD=0
Luminance Gain=0
Luminance Offset=0
Audio1Downsampling=1
Audio2Downsampling=1
Audio1BitRate=9
Audio2BitRate=9
Folder Structure Source=
Folder Structure Video=
Folder Structure Audio=
Folder Structure Muxed=
Folder Structure Subs=Subs
Intra=8,16,19,22,26,27,29,34,16,16,22,24,27,29,34,37,19,22,26,27,29,34,34,38,22,22,26,27,29,34,37,40,22,26,27,29,32,35,40,48,26,27,29,32,35,40,48,58,26,27,29,34,38,46,56,69,27,29,35,38,46,56,69,83
NonIntra=16,17,18,19,20,21,22,23,17,18,19,20,21,22,23,24,18,19,20,21,22,23,24,25,19,20,21,22,23,24,26,27,20,21,22,23,25,26,27,28,21,22,23,24,26,27,28,30,22,23,24,26,27,28,30,31,23,24,25,27,28,30,31,33
Matrice Preset=
Use deafult Matrice=1
LFEDownmixLR6Ch=-3
LFEDownmixLFE6Ch=0
CenterDownmix6Ch=0
SurroundDownmix6Ch=0
DynamicCompression6Ch=1
StereoDownmixType6Ch=0
RearChannelFiltering6Ch=0
DialogNorm6Ch=0
LFEDownmixLR2Ch=-3
LFEDownmixLFE2Ch=0
CenterDownmix2Ch=-1
SurroundDownmix2Ch=-1
DynamicCompression2Ch=1
StereoDownmixType2Ch=0
RearChannelFiltering2Ch=0
DialogNorm2Ch=0
No Audio Conversion=0
Flip Vertival=0
Add ResampleAudio=1
Resize To=0
Use CCE=1
Use TMPGEnc=0
CCE Safe Mode=0
RoBa Multi Pass=0
RoBa Visibel=0
CCE Bias=20
CCE Field Order=2
Progressive=1
DVD Compliant=0
Restrict auto I frame insertion=0
Close all GOPs=0
Intra DC=2
M GOP=3
MN GOP=5
SEQ Header=1
Constrained Parameter Set=1
TMPGEnc Motion search precision=4
TMPGEnc Field Order=2
Frames pr spread=50
Spread=40
OffsetFixed CQ Value=80
Use fixed CQ Value=0
Output YUV data as Basic YCbCr not CCIR601=0
Use floating point DCT=1
No motion search for still picture part by half pixel=1
Soften block noise=0
Soften Intra=35
Soften NonIntra=35
TMPGEnc GOP I Pictures=1
TMPGEnc GOP P Pictures=4
TMPGEnc GOP B Pictures=3
TMPGEnc SEQ Headers=1
TMPGEnc Max frames in GOP=0
TMPGEnc Close GOPs=0
TMPGEnc Detect Scene Change=1
Enabled Padding=0
TMPGEnc VBVBuffer=0
SubOutputPalette0=clBlack
SubBlendPalette0=0
SubOutputPalette1=clWhite
SubBlendPalette1=15
SubOutputPalette2=$001E1E1E
SubBlendPalette2=15
SubOutputPalette3=clGray
SubBlendPalette3=15
Resize Subtitles=100
CVD subtitles=0
bbMPEG MPEG1=0
bbMPEG VCD=0
bbMPEG MPEG2=0
bbMPEG SVCD=1
bbMPEG DVD=0
bbMPEG VBR=1
bbMPEG Pad VCD=0
bbMPEG Write PEC=1
bbMPEG Add Scan Offsets=1
bbMPEG Align Sequence Headers=1
bbMPEG Use Private Stream 2=0
bbMPEG Computed Bitrate=1
bbMPEG TimeStamps=0
bbMPEG Pulldown=2
bbMPEG MuxRate=0
bbMPEG Pack Size=2324
bbMPEG Packets Pack=1
bbMPEG Video Buffer=230
bbMPEG Audio 1 Buffer=4
bbMPEG Audio 2 Buffer=4
PBCType=0
Use LastCD Picture=0
Use EntrySVD=0
Save XML=1
Save Movie Info=1
ProcessPriority=1
Automatic Shutdown=0
[AVISYNTH_BilinearResize]
0=BilinearResize(^TargetWidth,^TargetHeight)
1=AddBorders(0,^BorderTop,0,^BorderBottom)
[AVISYNTH_SimpleResize]
0=LoadPlugin(!SimpleResize.dll)
1=SimpleResize(^TargetWidth,^TargetHeight)
2=AddBorders(0,^BorderTop,0,^BorderBottom)
!SimpleResize.dll=C:\Program Files\DVD2SVCD\SimpleResize\SimpleResize.dll
[AVISYNTH_BicubicResize]
0=BicubicResize(^TargetWidth,^TargetHeight,^b_value,^c_value)
1=AddBorders(0,^BorderTop,0,^BorderBottom)
^b_value=0.0
^c_value=0.6
[AVISYNTH_InterlacedResize]
0=LoadPlugin(!SimpleResize.dll)
1=InterlacedResize(^TargetWidth,^TargetHeight)
2=AddBorders(0,^BorderTop,0,^BorderBottom)
!SimpleResize.dll=C:\Program Files\DVD2SVCD\SimpleResize\SimpleResize.dll