You can let it rip the DVD to HD as Step 1, Let it extract and convert the Audio as Step 2, Encode to SVCD as Step 3. You can stop after Step 2 is done, as encoding starts. Then go into Misc. Tab and hit Recover button & then Continue and it will then start at the encoding stage.
SVCD making is really not fo slow PC, if your serious about SVCD's then you really need to upgrade to AMD 1700+ or better to make encoding times realistic.