Convert DVD image's to AVI (Xvid or DivX) files

I wish to find a program (and directions from experience) for converting DVDs to AVI files. A link to such a program and/or guide would work as well.

I am experienced with ripping DVDs into iso image files and then later burning them. However, I wish to be able to take a DVD or episodes from a DVD (ie- a TV series DVD with four or so eps on one DVD) and turning each into a seperate AVI file. I'm VERY happy with the quality of Xvid and divx files, and I'd appreciate advice on 1) the best way to do this, and 2) the software to use to get the best result. I'm willing to invest in buying software, but I want to only do so wisely and hopefully one-time-only. I realise freeware isn't always the best way to go.

My ideal solution would be a program that could result in Xvid avi's, and would not be too difficult to seperate episodes from an iso file with.

One last thing, that I'm not sure is possible but would be NICE to do- is if it is possible to create said avi file with subtitles (ie- a foreign DVD that has optional subtitles) embedded in the resulting file.

Thank you VERY much for your time and experience- I really appreciate that I can always come here and get the best, most trustworthy advice.

-Eiric