DVDx 2.0 That program will convert right from dvd to divx, assuming you have the divx codec. If not
www.divx.com has it. Converting to divx right from dvd drive can but extra strain on the drive. I recomend getting
Smart Ripper to rip the files, and converting them from your hard drive. Going this route requires roughly 6 gigs of empty space. Either way you will get pretty much as close to DVD quality as humanly possible.
Smart Ripper guide
DVDx guide (just ignore the chapters part)
If you want to do straight from DVD follow above proceedure above, but instead of opening IFO file, go to open DVD root, and select the longest, or figure out which one you want (ie if you have 16x9 and 4x3 on the same disc)