HandBrake is a very power and useful utility which allows to your covert DVD to MPEG4. As result the physical size of your video collection can be decrease twice or three times without loss its quality. The HandBrake supports any DVD-like source: VIDEO_TS folder, DVD image or real DVD (encrypted or unencrypted, but protection methods other than CSS are not supported and must be handled externally with third-party software) and some .VOB and .TS files. As result MPEG-4 or H.264 video files can be gotten. It is available for Linux, Windows and MacOS as a command line utility.
According to post in the LinuxMCE forum it’s planning to add the HandBrake to the system and use it as background script. Because the process of converting DVD takes a time. So, it’s impossible to trascode DVD on the fly. Anyway, it’ll be nice to have such possibility in the system where can be a huge media collection.