DVD to Digital File Conversion

I have searched around and found many varying answers to mostly old posts and tried them without success. I've had issues of poor quality and issues where iTunes won't allow me to put the on to my iPod.
Before I spend money on any software, I'd like to get a consensus on my goals.
I have a huge DVD (regular and blu-ray) collection and would like to start converting them to digital format for several uses.
1. iPod Classic & iPod Nano
2. Networking in my home for viewing
Questions:
1. Is it possible for me to convert my DVDs into single digital format file for each movie  that will be functional with a good picture quality for each of these purposes?
2. What is the best format to use?
3. What is the Resolution that I should use? (let me know if there are different formats for the different functions)
4. What are the curent top 3 programs that will allow me to do the above
Thanks for your help with this matter

If you want to take footage from a DVD to put into iMovie and then into iDVD and burn a new DVD disk, you MUST use some third party software to do so. You can purchase:
Handbrake http://handbrake.fr/
Ripit http://ripitapp.com/
DVDxDV http://www.dvdxdv.com/NewFolderLookSite/Products/DVDxDV.products.htm
Or you can use the free MPEG-Streamclip http://www.squared5.com/
Here are the steps AppleMan recommends for using Streamclip with iMovie 8:
+I have found I get the best results when I use MPEG Streamclip (which is free). You also have to install the Apple QuickTime MPEG2 Playback Component which costs about $20. Once you install the QuickTime MPEG2 Playback Component, you don't have to interact with it, but MPEG Streamclip needs it.+
+Insert your DVD in your drive. If DVD player runs automatically, shut it down. You should see your DVD as an icon on the desktop. Open it is a finder winder. You should see a folder which has VOB files.+
+Open MPEG Streamclip and drag these VOB files into Streamclip. If it offers to fix timecode breaks, say yes. You can do the VOB files one by one if you want to deal with shorter clips. Or, you can drag all the VOB files at once and create one long clip, or use streamclip to separate them into smaller clips.+
+In Streamclip, select File/Export using Quicktime and choose Apple Intermediate Codec. You may want to check "Deinterlace" in this step. Try deinterlacing and see if you like it. It depends on your final target media as to whether this will help.+
+Now you should have MOV files in Apple Intermediate Codec which can be imported into iMovie+
The process of decompressing the compressed video from the DVD disk, editing it in iMovie and then recompressing it to burn via iDVD will cause some loss of quality.
Please post back if you have further questions.

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