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Ok, I've tried FairUse and here is my review: Meh.

I understand and agree with some of your critiques, but I'm doing this for good results and FairUse seems to get the best results for me if you want compressed DVD rips.

I agree, though. The program has some quirks and the interface really is lacking. I've had two other bad experiences:

1) occasionally, mostly with TV DVDs, FairUse will list two tracks that look very nearly identical, and therefore could both be the movie track. There's no way to tell which is which, and sometimes it matters and sometimes it does. Not good.
2) from time to time, also mostly with TV DVDs, it will create a file like you mentioned. It'll be the output file I selected, but it'll be like 15KB.

oops, 3) there's no way to choose an aspect ratio you want, then size the output file. I think this is more a complication with XVID encoding than the program, though.

Aside from all that, I can't argue with results. You should see some of the results you can get with the program. Great quality at decent file sizes.
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Matt