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For those using Mac Handbrake, a bit of info. There should be a 0.7.2 update release in the next few weeks. This update may or may not sport a new GUI, but WILL support Baseline 3 LC 640x480 for the iPod. I've been working with some of the folks on the new development team (the original author is still on an extended hiatus) and have been testing new builds for them.
There is also a new much updated Windows Handbrake in the works, although it is slower going than the Mac version and will likely be released sometime after the Mac 0.7.2 version is released.
There is also a good tutorial on ripping DVDs with Handbrake (0.7.1) located HERE.
EDIT: There will not be a realease of Handbrake anytime soon. There WILL be a new program that is a branch off of Handbrake that should be out soon. This is being done to avoid confusion should the original developer of Handbrake decide to return and resume his work. The new App will look much like Handbrake (maybe a new GUI, maybe not) and will support 640x480 Baseline 3 video encoding for the iPod. Standby for more as I know it.