Like Molly said, you have to configure it to use XviD under the compression settings. If you use 2-pass (which you should), you'll have to configure and run it once for each pass. As for audio, I almost never use VDub's compression options, even with LAME acm, because they are far less extensive than those provided by dedicated audio encoding progs. There is a somewhat decent guide on how to encode mp3 with Lame using BeSweet at http://www.doom9.org/ac3tomp3.htm .
All-in-one backup solutions like GKnot or FairUse are convenient, but getting to know the options of the programs they actually use, although time consuming, is better. I hope you'll eventually make the dvd image itself available, as, depending on the encoding settings and quality, even a 2 CD rip can fail to accurately reflect the strengths of the original source.
I saw it. Nice stuff. When I get to my hom computer (Man, my father-in-law's DSL is fast!), I'll give it a shot. One quick question: at first glance, it lookss like you hacve me running an AVIsynth in VDM. Is this the case? If so, why use this versus VDM's own IVTC?
True, you would be using VDub for the actual compression. The difference is that Decomb (I've found) has much better field detection and produces better results overall (it is also still being actively developed and improved upon, much more so than that aspect of VDub). I hope this helps