The PS2 does not recognize the VCD format. But there are modchips or add-ons available like there were for the PS1.
I’ve heard that you can use PS2MediaPlayer (Google for it; it’s somewhere online). BUT you need to use some kind of boot method that comes with Action Replay Max called Media Creator. It can be installed in a memorycard in order to begin playing VCD and other filetypes on your PS2. I’ve read that you need your PS2 to be modded in order to run the Media Player.
If your PS2 isn’t modded, then you can also use SwapMagicFix to play VCD’s via PS2MediaPlayer.
Here are the supported formats of PS2MediaPlayer:
Video Mode:
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Video MPEG4-ISO (like XviD)
Audio MP3, OGG (mode 1, mode 1+), PCM and AC3
Audio and video should be in AVI format. (Don’t Work with OGM)
Audio Mode:
— — — — — -
Audio files : MP3 only.
Image Mode:
— — — — — -
Image files: JPG
Then, you would need the other stuff I mentioned above in order to play the extra file types.
Google for everything I’ve just mentioned and research it more because I don’t own a PS2 and have no intention of buying one to mod it.
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Here’s a guide I found to something called PS2VCD-player:
http://www.europa-versand.de/Service/PS2-VCDPlayer-TUTORIAL/Newbies_Guide_to_the_PS2_VCD_Player.htm
I have no idea what it is, but save it for future reference. Do a Google search for that too if you’re curious enough.
Good luck!