When it comes to preparing videos for watching on my iPod, iSquint is the best free offering that I have seen. The settings are very easy to configure and the developer is constantly adding more features. Once done, they can be optimized for either the video iPod screen or for playback on TV.
This freeware is for video files that you already have in your possession. If you want to make the videos from your DVD, you'll have to use HandBrake.