Another program you might want to consider (if there aren't proper chapter points) is VideoReDo. It's not freeware, but you can download a full 30 day trial version from
http://www.videoredo.com/
It will allow you to cut up a DVD in any way you like. It's even frame accurate. And of course there is no re-encoding performed (well perhaps a couple of frames may be affected depending on where you cut a video)
Definitely worth looking into
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