You might try
DVD2SVCD....I've used it before with good results. It will convert it to the SVCD format, which is 480x480, but SVCD comes from the MPG format.
I'd use Divx/Xvid if possible, as Homerboy mentioned. FairUse is a good program, and converting to Divx/Xvid takes a fraction of the time that it would take to convert to SVCD.