It isn't free but you might want to check out
http://www.pocketdvd.ca/
PocketDVD has now become DVD Catalyst. The $12.95 price is now up to $17.95 as I recall. The last movie I bought and then ripped to put on my X30 is Star Wars 3. Its size is 293 meg and the audio setting is at 80 kbits stereo. Even on my Qvga I can't believe how good it looks and sounds. No, I haven't used the others but I sure like how this program performs. I will say that the interface takes some getting used to but then that doesn't affect the quality of the movie. Plus....
WINNER of the PocketPC Magazine 2005 Software Awards