I prefer ffmpeg for this, and I would use:
Code:
ffmpeg -i input.vob -vcodec libxvid -qscale 5 -s 640x272 -r 23.976 -aspect 40:17 -g 240 -bf 2 -acodec libmp3lame -ab 160k -ar 48000 -async 48000 -ac 2 -pass 1 -an -f rawvideo -y /dev/null
ffmpeg -i input.vob -vcodec libxvid -qscale 5 -s 640x272 -r 23.976 -aspect 40:17 -g 240 -bf 2 -acodec libmp3lame -ab 160k -ar 48000 -async 48000 -ac 2 -pass 2 -f avi output.avi
Changing the parameters as needed. The GOP '-g' should be 10 x FPS, a lower qscale gives better quality, but higher bitrate and size, it's rare to ever use 3 or less as this may not play on most standalone players because of high bitrate, 5 is a good number.