Popular open-source DVD to MPEG-4 converter Handbrake has been updated to version 0.9.4. The new version offers a host of improvements, including speed, size, and quality improvements taken from the x264 project, support for 64-bit and parallel builds for added speed improvements on 64-bit capable machines, support for soft subtitles, a live preview feature, better input support, constant quality encoding which varies size to meet a given quality level, a new custom anamorphic mode, and more. Handbrake 0.9.4 is available now as a free download for Mac OS X 10.5 or later, Windows XP or later, and Linux.
They did drop the AVI format, which if you want to convert using that, use 0.9.3. Windows 7 can runs all formats without codecs except MKV. Use the CCCP pack for that.