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Try using staxrip to convert your DVDs. You can encode to Divx, Xvid, x264, and u se any container you want.  You can get very high quality encodes  with no blocking.

BUt it does take a long time to encode. With my A64 3200+ it takes 10-12 hours for a decent sizedm ovie at high quality settings.

http://www.planetdvb.net/staxrip/