Just to add my sixpenneth with some additional video compression discoveries (sorry if it reads a bit note like but these are my notes!).
I use makeMKV but installed under windows7 as a virtual(box) machine.
I have a folder in home called XPShare which is setup from the windows virtual machine as a shared drive (its called XPShare because its the same folder I used when I had an XP virtual machine)
Two methods:
1 no subtitles
a use MakeMKV to rip the blu-ray to the shared folder
b Use Handbrake in PClos world to compress the movie, a little adjusting of quality, sizes and trimming of end titles to get it less than 4Gb.
2. Subtitles
(NB Handbrake does not correctly recognise the subtitles of the ripped blu-ray

)
a Use MkV to rip the blu-ray but this time select one of the english subtitle tracks. Sometimes it can be really painful to get the right one although it typically tends to be the first forced version NB ONLY the forced track....unless it is a foreign language film.
b Play the ripped blu-ray using VLC under PCLOS to check the correct subtitle track has been selected.
c Use MKV Files Creator (in the repos) to create a brand new MKV track which will be the same huge size! However you make sure that the subtitle "forced" option is ticked. Reason : sometimes this forcing seems to get lost, no idea why. This step only takes about 5 minutes...honest.
d. Use the following command line to compress the movie to an AVI file (universally playable.....so far) :
mencoder -oac faac -faacopts object=2:tns:br=384 -sws 2 [-vf scale=<x>:<y>] [-endpos hh:mm:ss] -ovc lavc -lavcopts vcodec=mpeg4:vbitrate=<rate>:vhq:vpass=1 "<MKV file>" -o "<avi conversion>"
where:
[-vf scale=<x>:<y>] - include if the movie needs to be scaled to bring the size down
<x>,<y> Try to use : 1792:1008 , 1536:864 or 1280:720
[-endpos hh:mm:ss] - include if you wish to trim off the ending titles, use VLC to determine the time
<rate> - the bitrate a value somewhere between 3000 and 5000. The higher the value the better the quality but the larger the file. To be honest 3500 is about the limit if the movie has lots of night scenes since these tend to show the compression artifacts.
<MKV file> - the full filename for the MKV ripped movie
<avi conversion> - the full filename for the converted avi file.
I have a rough calculator for <rate> :
<krate> = 1200 / xsize_in_k_pixels /y_size_in_k_pixels / duration_minutes
for example a 1920 x 1080 movie of 90 minutes :
rate = 1200 / 1.92 / 1.08 / 90
= 6.43 ie 6430, however higher than 5000 is not necessary
Please note this is very much a work in progress but this is the best I have found so far. FYI I have tried all of the following to solve the subtitle problem :
Handbrake - will not overlay subtitles
Avidemux - freezes when loading files
AcidRip - only reads dvd vobs
DivXConverter - Limited compression
DVD95 - only reads DVD's
OGMRip - only reads DVD's
Gmencoder - wont analyze subtitles
VLC - plays the damn subtitles but wont embed them during conversion!!
damnvid - freezes at 0%
Or maybe its just me
