No need to do as 2 steps with DVDfab and handbrake. All you have to use is DVDFab. In DVDFab you need to choose "DVD to Mobile" not "DVD to DVD". After choosing "DVD to Mobile" then select movie you want to encode (usually longest selection). Then choose "Generic", un-select subpicture, and change profile (below) to "generic.mp4.h264.aac".
Then select "edit" and change to 800x___ which will give you movie at native resolution on the Incredible. It will crop automatically so it will vary from 800x338 to 800x438 depending on aspect ratio. I encode at 23.976 fps. You want to then change the bitrate to get the quality you like. I like to target .12 bits/pixel (at right). I change audio to 64 kbps, volume to 150%, and stereo. I run 2 passes. If you need to encode faster go with 1 pass.
By doing the above your movies will end up being being 700 - 900 mb usually.
Good luck!