Originally posted by Nubben:
I may have bought £20 worth of useless app.
well I certainly won't argue with that
anyway, you're looking in the wrong place. aviray and any other product that mentions "ffmpeg" (besides maybe ffmpegX) compresses movies for use as computer files. if you want the result to play on a DVD player you have to make MPEG-2 files. if you're already starting with DVD-source files, just burn them straight back to DVD (decrypt to a disk image instead of to VOB files). If it's then too big, use DVD2One or DVDRemaster to reduce the size (these are the only apps that do it by removing arguably redundant data instead of by decompressing the whole movie and recompressing again).
also, the reason your result was so bad was because you gave too high a resolution. DVDs are only 720 pixels wide to start with; you don't want to make the encoder invent more pixels and then try to compress and preserve them.