Read this thread here:
http://www.ipaqhq.com/forums/showthread.php?t=11006
The Super DVD ripper is not free, but I found it is easy to use and get the best result. I have tried a lot of DVD ripping software and this is the best.
Of course there are several FREE programs out there but you have to go through many steps such as converting it to .vob files then use another program to convert it to divx...etc....but the Super DVD ripper does easily.
I paid for this program and I love it. I have ripped so many movies:
1. Spiderman
2. Matrix series
3. Shrek 2
4. Chronicles of Riddick
5. X-Men 2
7. James Bone (Die Another Day)
8. Finding Nemo
9. The One
...more to come
I encode it either in 1500 kbit/sec or 2000 kbit/sec and it turns out great. I also ripped only FULL screen version because it looks better on the HX4700 screen