well, if you can avoid it, dont get rid of your PS2, getting rid of games/consoles is a MITAKE! as you have learnt with your dreamcast, i cant say this enough!
also, to play VCD's on dreamcast, you have to get a program, i forget what one, but you DL that, burn it to cd, and it acts as a boot disc for VCD's, which are Video CD's. you burn an MPEG to CD in a special way, (use nero or something, ive never done it) and you have got your self a nifty VCD, the quality usually isn't that stunning, and most movies (depending on length/quality) take atleast 2 Cds, they are good for Cartoon Series' and Anime.