What difference does it really make anyway, I wonder? There’s been open source mpeg2 libraries around for quite a while now anyway. Just look at DivX/Xvid for an example(of meg4).
Xvid will create DivX files yet costs nothing…
You can always use mplayer/mencoder to dump the video from the dvd to a file format that’s more manageable. Here’s one for windows: http://oss.netfarm.it/mplayer-win32.php
If you’re using linux, you should already have them, just waiting to be run in a console. If not, and you’re using deb-based one, just grab em with sudo apt-get install mplayer
similarly if it’s an rpm based os, use sudo yum install mplayer
You’ll probably also need the libdvdcss library or whatever it’s exactly called. It’s the ContentScramblingS(omething?) plugin you need to be able to process encrypted dvds. Many OSs come with it, though the US has some kind of a law on crypto stuff that often necessitates the download - even in different parts of the world.
I forget the command line needed to dump a dvd into a video file without changing the compression scheme, though you’ll find it with a little googling.