mkv 2audio/1subtitle to Xvid/mp4

[felix]

Hi,
let me first apologize if this was answered before!
I have many mkv files that have 2-3 audio tracks plus 1 or more subtitle tracks.
Naturally my qnap file server is now out of disk space

1. for regular dvds, I use fairuse wizard to get an xvid/mp4 file with 1-2 audio tracks no problem
2. But..I am running out of energy trying all the different programs out there

I have tons of 1280x720 mkv files with 2 or more audio tracks (usually DTS6) and one subtitle track.
The first thing I do, is to use MKVtoolnix to demux, keep only the wanted tracks and remux the mkv file.
But, to reduce disk space, once viewed I would like to store these movies as xvid/mp4 but with the 2 audio tracks and the subtitle track, for later playback with VLC of course.

Is there any tool out there that can downsize these movies to something like 640x480 at 1500-2400kbs with two stereo audio tracks(mp3/ac3) and one soft subtitle track?

many thanks
8)

[Baldrick]

I would probably shrink with handbrake. Add the subs using mkvtoolnix.

[felix]

Thanks a zillion sir Baldrick!
abit late on the reply as I am on holidays

8)