Well, would you be wanting to burn a SVCD, or do you just want an .AVI file that you can play on your computer?
If you just want an .AVI, I highly recommend Doom9's DVD backup guide. You'll have bypassed the first step (ripping) since you've got unencrypted VOBs on your hard drive already. Probably the best free codec that you can use in an AVI is XviD.
Here is Doom9's XviD guide, which uses only free software.
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