Here is a freeware program called "DVD Shrink" it works like DVDfab but better!!!
Most movies are on 9GB media, DVD Shrink lets you re-author the DVD; take out Trailers, Extras, Subtitles and even compress the movie file to fit on a 4.7GB blank media.
I use DVD Shrink along with HTC mp4 found over at XDA and thats it, My movies are encoded at 752x480 30fps and look great with no frame skips using WMP or Album.
Here is XDA site for mp4 encoder
http://forum.xda-developers.com/showthread.php?t=478050
and DVD Shrink