It's been awhile since I used it, but DVD2SVCD makes an MPEG in the working folder before authoring. You can uncheck the authoring option IIRC. It can use the best payware encoders, but you have the all-free option as well. Of all the freeware all-in-one converters, I still think this one is the best. Don't be fooled by the name, it can do AVI conversions. And read a guide, after DivXtoDVD you'll be stunned at all the possible settings.
Take a look: http://www.dvd2dvd.org/