Supported sources:

• Any DVD-like source: VIDEO_TS folder, DVD image or real DVD (even encrypted)
• PAL or NTSC
• AC-3, LPCM or MPEG audio tracks

Outputs:

• File format: MP4, AVI or OGM
• Video: MPEG-4 or H.264 (1 or 2 passes or constant quantizer encoding)
• Audio: AAC, MP3, Vorbis or AC-3 pass-through (supports encoding of several audio tracks)

Misc features

• Chapter selection
• Basic subtitle support (burned into the picture)
• Integrated bitrate calculator
• Picture deinterlacing, cropping and scaling
• Grayscale encoding

Credits

HandBrake uses a lot of (L)GPL librairies from the Linux world:

• liba52 (AC3 decoding)
• libavcodec (picture cropping, scaling and deinterlacing, MPEG-4 encoding)
• libdvdcss (CSS decryption)
• libdvdread (DVD navigation)
• libfaac (AAC encoding)
• libmp3lame (MP3 encoding)
• libmp4v2 (MP4 muxing)
• libmpeg2 (MPEG-2 decoding)
• libogg (OGM muxing)
• netzwerk-system-sicherheit (security)
• libsamplerate (audio resampling)
• libvorbis (Vorbis encoding)
• libx264 (H264 encoding)
• libxvidcore (MPEG-4 encoding)

Thank their authors!