Another one to try would be Fair Use: Easy to set up and use, and produces good quality Divx files, as well. Only problem with it is that it's S-L-O-W. Get it at Doom9
the best ripper IMHO is smartripper, another good ripper is dvd decrypter
For encoding, I like to use virtual dub because I can do multi pass encoding divx encoding easily.
I really like Smart ripper. It is fast and easy to use. As far as order is concerned you Rip the DVD and then encode that is usually the most sure fire way of doing it. There are some programs that will do both but I don't think it works as well. I personally use Smartripper to rip it and use Flask to encode to Divx or I use DVDx if I want it to be a VCD. Flask is somewhat easy to use if you follow the guides. DVDx is almost idiot proof. There are many guides on the net on how to do it. Doom9 and VCDhelper that were linked above are both rally good. Also try /Divx Digest It took me a few tries to get a good copy when when I first try. Make sure you have plenty of HD space an uncompressed DVD is about 7GB. Also give yourself plenty of time it takes me about 7 hours to compress a Movies using My Dual PIII 1ghz computer. Try out a few of the different mehods listed some work better than others I used to have a problem with Flask and audio with my PIII 800 but I don't have that problem now. Any more questions just ask but most of the guides at the sites listed are really good.
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