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I use dvdfab 8 for ripping. I rip only the main movie as i have no interest in anything else. I then use Clownbd to get the proper audio ,that being ac3 5.1 since thats the best the xbox 360 will accept. From there i compress with handbrake into an .mkv file. On my computer i use divx plus codec which allows me to stream .mkv . MediaCenter master gets all my backdrops and folder art and Media Browser integrate all my movies into media center. Storing ripped discs consumes a lot of space but if that is the route you want to go then look into a program called My Movies , it integrates with media center for streaming over to the 360.The plus of ripping is quicker access to your movies to choose what you want to watch ,rather than staring blankly at shelves full of movies. The down side is its not really a simple process and requires alot of time and effort.
There are many ways to go about it and there are plenty of one touch programs,none of which give really great results.In my opinion, xilisoft has the best all in one program. In the back of my mind, one day i would like to build a purpose built htpc,and rip everything on to it.

Do you have a media streaming device in mind.

I use completely different software and procedures for dvd's
rip with dvdfab, cut all the credit etc with dvdshrink and then
compress with avi.net.

What media streamer do you plan to use.I know this sounds a little over the top,and it took a while to get where i am but now i can rip and compress a movie in a couple of hours that looks and sounds great.

Oh and a lot of discs are coming out with cinavia protection and wont allow you to just rip and play the rip.

I will help you as much as i can based on my own method


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