What output type should I use? The options it give me (converting DVD to AVI/MP4) are audio copy, MP3, and H264. Audio copy I assume is AC3 for a DVD? I tried H264 to be “standard” but Window Media player couldnt play it without additional plugins. I didnt try on my DLink media server yet. But It seems XVID + MP3 or AC3 are both very common.
Any recommendations or major factors on choosing one?
May I ask you if the 3 threads that you have opened within minutes apart from each other have something to do with each other 
They are related, but not dependent on each other necessarily.
I tried with MP3, and when trying to play the output on the PC, there was no sound. So trying AudioCopy now.
you might double-check the specs on the DLINK media server. I don’t think it supports h.264/AAC yet so you don’t want to chose that option.
as for the others, i can’t suggest anything because I don’t have a media server yet (but been researching them)
Hmm it appears not by looking at specs. I thought H264 was “the standard”. I got DIVX working though on the problem VOB files using Squared5 to fix time gaps. Using its home theater profile (which uses MP3) all works fine.
h.264 is gaining popularity especially for iPod and portable players. Many of the home media players do not support it yet but are slowly adding support for it.