Never did that. But I've heard that MyDVD can "burn" the files to your hard drive, then you can use DVD2AVI and TMPGEnc to re-encode the MPEG2 video & audio from the DVD VOB files into MPEG-1 or 2.
I've been looking for the same solution; try Digital Media Converter - http://www.downseek.com/download/28210.asp