DVD2AVI is actually about the best application there is for decoding a DVD. So if its so amazing why has it not been mentioned before as the best method of making DivX? Basically because it has too few options to make a good quality movie. For example, you cannot just crop and resize the video. To do this you must frameserve your movie first to other applications such as TMPGEnc. Neither does it have MP3 audio support or IFO parsing like Flask Mpeg. It was also slightly slower than both Flask and Mpeg2avi. But since everyone now wants to make movies from DVD using Nandub it has become necessary to introduce this method because its by far the easiest way to decode a movie to Nandub - so lets get started!
DVD2AVI is a frameserver that allows you to create a D2V project file for your VOB files after you have ripped them with some DVD ripper like SmartRipper. After you have ripped the files, open DVD2AVI and select the VOB files you want to convert and create a D2V project file.
After that's done, you can use TMPGEnc in order to encode the video into VCD or SVCD compliant format. Excellent and relatively easy tool to use -- must have for serious movie freaks!