ITunes makes my CD's small. How Can I convert DVD's into a small file too?

I bought my wife an iBook and would like her to be able to watch a movie just like she does the music. I've used Mac the Ripper to get it onto the computer, but I don't want it to be a 4 GB or more file. I've been able to use Matinee to select them, but isn't there a way to make them into the equivilant of an MP3... am I thinking of an MPEG 4.
If so, is commercial software the only way available to do this.... I have Quicktime Pro 7. Does that do the conversion?
Thanks, I hope this is a clearly written question.
Dave

you can export using the export from the menu in quicktime.
But if you want to re-encode a DVD you could use something like Forty Two
http://www.kaisakura.com/fortytwo.php
For similiar apps do a search on versiontracker.com
That creates a gorgeous 700-1 GB divx (mpeg4)

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