HandBrake is an open-source, GPL-licensed, multiplatform, multithreaded DVD to MPEG-4, AVI or OGM ripper/converter. MP4 with AAC audio or AVC with h264 video and AAC audio. It also lets you crop the image to get rid of the black bars to bring down the size even more and lets you choose options as to how you want it encoded.

Supported sources:

• Any DVD-like source: VIDEO_TS folder, DVD image or real DVD (even encrypted)
• PAL or NTSC
• AC-3, LPCM or MPEG audio tracks

Outputs:

• File format: MP4, AVI or OGM
• Video: MPEG-4 or H.264 (1 or 2 passes or constant quantizer encoding)
• Audio: AAC, MP3, Vorbis or AC-3 pass-through (supports encoding of several audio tracks)

Misc features:

• Chapter selection
• Basic subtitle support (burned into the picture)
• Integrated bitrate calculator
• Picture deinterlacing, cropping and scaling
• Grayscale encoding

What's New in version 0.9.3 Final:

• Better PMT processing
• Basic underlying support for live previews (encode from a seek point for a set number of frames)
• Better searching for IDR frames in H.264 streams
• Preset changes (iPhone goes CRF, some old Apple presets resurrected as Legacy)
• Assorted bug fixes

A complete list of all changes is available here.