Handbrake is quite simple to use, and it doesn't cost you a penny. I have over 3.5 TB of movies ripped through it and every single one plays just fine on my mac and pc computers, my apple tv, ipods and iphones and my motorola droid. Here is a basic rundown of what you need to do. (This was done from a mac, so I don't know if the process is any different in the pc version of the program)
1. Open the program and choose your source (aka your dvd)
2. Once it has scanned your source you need to pick the appropriate title track that the movie is on. Easiest way to do this is the run the dvd in one of your dvd player programs and check to see which title is running when your watching the movie.
3. Select your preset. I choose Apple>Universal because it gives me the widest range of devices to play the file on. Make sure the format is set to MP4 file and your video codec should be set to H.264.
4. From here there are a variety of things you can change depending on the quality of video you are looking for. If you are looking to get the file to be a certain size, choose the Target Size option and set it to how big you want the file to be. If you are looking for a certain percentage of original quality then change the Constant quality from 1-100%
5. You don't need to adjust the picture settings unless you want to preserve the exact aspect ratio of the video. 720x480 is standard for widescreen and 640x480 is the standard for VGA fullscreen. Anamorphic only applies to widescreen. No need to touch the denoise, detelecine, deinterlace, deblock, or decomb features unless you are experiencing artifacts in your movie or bits of noise throughout.
6. Once you have your settings chosen, pick your file path to save to, add to queue and start burning. Handbrake does the rest.
7. Note that appropriate audio tracks and subtitles may need to be selected if you are watching a movie with another language and subtitles, or if you want to watch a dubbed movie in another language. Chapter markers can also be set up if you want to be able to jump to particular locations in the video such as after opening credits or to particular scenes in the movie.
Hope that helps. Any other questions you have go ahead and post or check out the forums on the Handbrake website. Those guys are much more knowledgeable and know the program inside and out.