Backing up DVDs

What software I have to work with:
     -AnyDVD (rips, makes an exact copy of disk contents, works like its supposed to)
     -MediaCoder (does conversions, 64-bit Edition, latest build)
     -Media Player Classic + K-Lite Codec Pack (for viewing videos)

When I rip a DVD, it comes out as several VOB files split up to make the full movie. MPC can handle these, but they jerk about every other second so it's not that good. I want to convert them down to something more manageable. And while I've finally found a setting on MediaCoder that can do that, I can't find a program that can join the video files effectively. I've tried CyberLink, but it's got to "Produce" the file and convert it to something new, and when the finished file comes out, it's really jerky in MPC. My most recent attempt at messing with the conversion settings resulted in a video that was jerky in MPC but had good audio, or ran perfectly in RealPlayer but had no audio. I can't use Windows Movie Maker, because that doesn't come with Windows 7, and I don't want to use Windows Live Installer to obtain it, because that'll force a bunch of other software on me that I don't want.

So, what I need is a way to convert movie files so they run efficiently on MPC and most other popular video players, and splice them together into one big file instead of split ones. One step after the other would be fine, or both steps at the same time. I'd prefer the finished video to come out in a pretty decent quality.

I'm open to new software suggestions. Also, what format do you recommend the most? I wanted to go with AVI but CyberLink only offers that option in some bizarre way that results in a 19-gigabyte output file.

Also, what are "audio channels" and how do I know how many I need?

Honestly, nowadays it's easier to just download a DVD rip than rip the same DVD yourself.

If you insist on doing it yourself, don't use AVI/XVID/MP3, they're all outdated. Using MP4/H264/AAC and the right settings you can fit what would be a 700MB dvd rip into 250MB with the same quality.

I've got some pretty old stuff though. And sometimes I want a better quality than the torrent offered. Any suggestions for a program I could use to join split pieces of a film? That can convert effectively?

EDIT: Ok now I have a video that plays 16:9 on MPC, but 4:3 on RealPlayer. How does that work?