If you are looking for a freebie that does it all get lenox' "AutoGordian Knot". It will let you create Divx or 2-pass Xvid files from the vobs created by DVD Decrypter, and will now let you convert other .avi files and mpeg files into Divx or Xvid. It does all the work while you just pick the desired filesize (even has settings for 1-cd, 2-cd, 1/3 dvd-r, stuff like that). Xvid plays in my rca standalone just like Dvix and AutoGK will let you use any audio source you have codecs for. I use AC3 for the 2-cd Xvids or mp3 for the 1-cd Xvids and they render twice the visual quality of other formats for the same filesize.
Check it out!