I probably have posted this suggestion on these and other forum before, but just in case here i go again. this my be just my opinion, you are welcome to desagree. With new encryption comming in almost every new movie that comes out, i don't allow my ripping and compressing to be done in one step. Even with anydvd, the best decrypter there is(which i do have). I always rip the movie to the HD first with anydvd or fabdecrypter, then i use one of my favorite programs, recode2,shrink,dvd2one, to compress. No decrypting on the fly for me, so no errors. oh yeah, i forgot, allow the burning part of the process not to go faster than 4x, i do 2x.
I don't see anything wrong with your thinking, with a few additions if they have to be compressed to less than 80% then i will use Cinema craft encoder. And i know for a fact that all my stand alone players will play backups burned at 12x-16x perfectly, but i burn at 6x to be sure, and also use the best quality blanks you can find.
i don't use rebuilder much because i feel i have no needed to because i mostly do main movie only, which usually doesn't require much compression. the very few times i have used it(like with king kong), i use it with HC, it is free and as good as any other, just a little slower. the main point in my original post was, not to rip and compress at the same time(on the fly).