Convert to AVI without quality loss?

Is there a way to convert a DVD or saved video data (VOB/IFO) to AVI or DIVX format without any quality loss in picture or sound?

No - you’re usually converting from one compression format to another (MPEG2 -> MPEG4) and this inevitably involves a quality loss in both audio and video.

Note that strictly speaking, .avi is a container and not a format. You can get MPEG2 files as .avi

Is there a container that you would recommend that would involve the least degradation in sound/picture quality?

Perhaps if you tell us exactly what you would like to do, and what type of display you are viewing the end result on, it would save some time.

The only way to not reduce quality is to leaving the video as is, aka as vob.

If you want to create some smaller files there are some codecs that allow to obtain a good video quality, like divx, xvid or H264, or other. But these will have always a lower quality than the original dvd video. If you plan to watch these movies on a big screen television, maybe it’s not a good choice.

I would like to watch these my 1024x768 monitor. I would like to back up a couple of DVDs onto my HD. I can view them in Windows XP media center but I would like a one-click solution instead of having to start up Windows media center every time and navigate to the folder just to watch it. If there is no other way I can keep them as .vob files but they are large and I don’t need to backup things like subtitles and captions and other languages. It would also be nice to watch in Divx instead of windows crappy media center which does not have many of the features of Divx.