Seen from the specs it is not supported:
http://www.mede8er.com/specifications-med500x.htmlAs this is a rather old format, I personally don't think it will be supported in a future firmware.
Only way to go then is to play the MPG files separate or find a program that can convert SVCD to DVD with the menu included.
Edit: just see that Tachita was some secs faster but has the same idea...