These two links will help you quite a bit:
A much more eloquent guide that I found, which is pretty much the same as mine, but he provides more detail and a bunch of screenshots. Also, he uses Smartripper to rip his DVDs to hard drive, you don't have to of course:
http://www.microsoftusernetwork.com/zarax/dvd_index.htm
Nice article from the MSDN library, which focuses strictly on Pocket PC encoding:
http://msdn.microsoft.com/library/de...l/encodppc.asp