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I should note that if you're trying to RIP a DVD then you'll need different software. DVDx works great for me, very user friendly, and its free (older version). The newer one is called DVDxCopy and costs money.
It has settings so that you just tell it what format you want to encode with (AVI, Mpeg-1, Mpeg-2), lets you select a codec, then you just select how big you want the resultant file (around 700MB gives you pretty good quality with DIVX), and it does the rest for you.
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