Tools and Programs required
Hardware:
1)DVD-ROM/R/RW and/or CD-RW
Programs:
1)Vstrip
2)Mpeg Mediator
3)Virtual Dub

Step 1:
Use Vstrip to copy vob files from dvd, excluding extra audio streams and cutting the video up into chapters. AVG time about 3 Min per 1gb VOB

Step 2:
Encode vob file segments with Mpeg Mediator using divx 5.0.2 at 100% 1-Pass quality based, with quater pixel and bidirectional encoding checked.
DO NOT ENCODE AUDIO use PCM(uncompressed) if you do encode audio the sync will be way off. The files should be 250-400MB per 23-25 Min. Do not run any other programs while performing this process. AVG time 45min to 90Min. be sure to name the output file with a .avi extension.

Step 3:
Load up .avi files into virtual dub, use the smoothing filter at 100% with noise prefilter on. Decimate the video by 2, use divx fast motion at default settings to compress video. Compress the audio using WMV V2 44.1khz 64kbps for Audio/Video, do a conversion to 44.1 from 48khz with the high quality conversion box checked. Make sure the audio interleave is set to 0. This should produce a video file about 40-75 MB per 23 Min, depending on your computer and the codec version you have installed.