Extract DVD videos, to author a new DVD using iDVD...?

I want to extract seveal chapters from a few DVDs, and then make a new DVD (using idvd) from these chapters.  What is the best method/video format I should use to extract the chapters to begin with, so here is minimal loss if quality in the final DVD? I was thinking of using Handbrake to extract chapters (from several DVDs) as mp4 files, and then use iDVD to author a new DVD from those files. But what format in Handbrake should I use to ensure best quality? Is Handbrake the best way to go anyway? Thanks, Fox.

You need to convert the VOB files in the TS-Folder of the DVD back to DV which iMovie is designed to handle. For that you need mpegStreamclip:
http://www.squared5.com/svideo/mpeg-streamclip-mac.html
which is free, but you must also have the  Apple mpeg2 plugin :
http://www.apple.com/quicktime/mpeg2/
(unless you are running Lion in which case see below))
which is a mere $20.
Another possibility is to use DVDxDV:
http://www.dvdxdv.com/NewFolderLookSite/Products/DVDxDV.overview.htm
which costs $25.
For the benefit of others who may read this thread:
Obviously the foregoing only applies to DVDs you have made yourself, or other home-made DVDs that have been given to you. It will NOT work on copy-protected commercial DVDs, which in any case would be illegal.
If you are running Lion:
From the MPEG Streamclip homepage
The installer of the MPEG-2 Playback Component may refuse to install the component in Lion. Apple states the component is unnecessary in Lion, however MPEG Streamclip still needs it.
To install the component in Lion, please download MPEG Streamclip 1.9.3b7 beta above; inside the disk image you will find the Utility MPEG2 Component Lion: use it to install the MPEG-2 Playback Component in Lion. The original installer's disk image (QuickTimeMPEG2.dmg) is required.
The current versions of MPEG Streamclip cannot take advantage of the built-in MPEG-2 functionality of Lion. For MPEG-2 files you still need to install the QuickTime MPEG-2 Playback Component, which is not preinstalled in Lion. You don't have to install QuickTime 7.

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