You might want to look at Xvid4PSP. It can convert to a great many different formats, (though it doesn’t have a preset for your Zune). You can encode to MP4 using the H264 codec. You can adjust video resolution, framerate and audio format fairly easily.
Xvid4PSP will open dvd video folders directly, so that helps matters.
http://www.winnydows.com/news.php Free to download and use.
If you are set on using wmv and wma, this tool won’t work for you though, as it doesn’t encode to those formats.
To get the dvds onto the hard drive you will need a decryption/ripping tool. A free one is DVDFab HD Decrypter. It is still being updated.