It's taken me a couple of weeks of experimenting on and off, and trying out a variety of free and commercial software, but I've worked out a method for getting the best video transfers from DVD to the video iPod -- nice and smooth with great audio. I thought I'd share it here:

1. Rip the DVD to a hard drive folder with DVD Shrink. DVD Shrink will handle most encrypted and copy-protected DVDs. If not, DVD Decrypter can usually do it. Note that neither program is maintained anymore (they're illegal). However, they can found on the internet with a little searching.

2. Convert the VOB files in the hard drive folder to MPEG using the Joiner function in VideoReDo. You'll wind up with a single, large mpeg file.

3. Using WinAVI iPod converter, transcode the mpeg file to mp4. I've found that WinAVI is better than any of the other converters because it produces the smoothest video -- no jerkiness at all -- and, it allows compensating for anamorphic (widescreen) videos that are in other than 16:9 format. You'll have to tweak the AC3 filter (which can be found in the control panel on Win machines) to get maximum volume. Also be sure that the AC3 filter is set for stereo and not surround, or you'll find you lose parts of the soundtrack.

4. Transfer the resulting file to your iPod using iTunes or a 3rd party program like Redchair Anapod.

This is a faster process then it sounds, but will produce the absolute best results.