Well, basically iso, bin, and dat are three different formats of essentially the same thing. a raw data file of the entire contents of a cd. most burning software supports one or more of them.
Ultimately you're creating a "disk image" on the hard drive of the original Video CD, and then burning that image to blank cd(s).
Here's a few links to get you started...
cdrfag.org Lots of info here
vcdhelp.com - Probably more than enough tools/utils and info