I've been monkeying around with this. So I rip my Saving Private Ryan (SPR) DVD using dvddecrptyer into 1 VOB file. Then I use Super C to encode in mp4 format (using H.264) I set the Video Scale to 854x480, the bit rate to about 1500, and the audio to 128kbps. The MPEG2 bit rate is just under 5k and the audio is 192kbps. its encoding as i type this.
I also downloaded the latest version of Act1 as it now supports the Droids screen resolution.
I tried a sample of this on 1 chapter and it filled the screen completely, audio sounded good, no jerkiness. THis was the 1st chapter in SPR so its action packed. I'll report back with the full monte.
Tried handbrake - It didn't work too well.
UPDATE 1 :
I let Super C crank on it overnight - it choked. could be numerous things so says Super C. I was working on my laptop during the encoding process. Tonight I'll let it run stand alone. Could also be a memory problem.
UPDATE 2 :
I let Super C crank on it overnight again. - it choked.
update 3 : I bought DVD Catalyst. Works great. $10 well spent. I use the Droid preset and modify it for 848x480 video. Next release will be 854x480. It's faster than Super C to boot.!
Building up my library.