Handbrake is open source free software for Linux, OSX, and Windows!
It can rip DVDs to perfect 720p video files using the h264 video codec w AAC audio. The container options are MP4 and MKV (preferred, superior open source container). Handbrake allows for chapters to be auto created within the video, as well as optional subtitles which can be turned on or off during the viewing of the video!
Here is the link: http://handbrake.fr/