Best Settings - DVD to MKV in Handbrake
Handbrake Settings:
MKV Format (allows you to edit subtitles, audio tracks, etc.)
Dimension - Anamorphic = Automatic (w/ Modulus = 2). Auto-Cropping = On
Filters - All Off (w/ Decomb on for TV or Interlaced Video)
Sharpen = LapSharp (Preset = Light, Tune = Film)
Video - H.264 Codec (720p) - Frame Rate = Same as Source, Constant
Quality - Avg Bitrate = 1800K w/ 2-Pass Encoding
Optimize Video - Encoder Tune = Film (Encoder Profile = High) Encoder Level = 3.1
Audio, Subtitles, & Chapters - Set to Your Personal Preferences
Keeps image sharp and gets the file size down from 5 gigabytes.
Yields a 1.3gb MKV file that has no perceivable quality loss (IMO) to source material.