3 hours??? You're either encoding in very crappy quality or you don't know what you're talking about.
I have a 900mhz classic Athlon, and it takes 8 to 10 hours to encode a movie to VBR SVCD. (480x480, mpeg2) I always try to fit the movies on 2 CDs, and encode in 16x9 format so I can use the "squeeze" feature on my Wega.
Ripping the .vob files from the DVD takes like 5-10 minutes, then I make a project file with DVD2AVI which takes 10-15 minutes, and encode with TMPEnc after that. The result is actually pretty good, and the shorter movies look very close to a DVD.