Wanting to start fan editing.

Hey everybody.  I'm interested in getting started on some of my own fanedits but I'm a bit confused on how to get started.  I have DVD Decrypter and am familiar with how to use it and I have a copy of Sony Vegas.  My question is, once I get the file pulled what's the best way to convert it to load it into Sony Vegas.  What program would be the best to do this and what settings should I use.  Once I get to that point, I should have no problem with the editing side of things.  Any advise you all could give me would be much appreciated.

Instead of working directly with the MPEG2 video, it may cause you fewer problems if you first convert to AVI (use a lossless codec to compress the video) and work on that.