To answer your question in one word yes.
Use the mobile option in DVDFab generic (xbox360 option is slow and makes a wmv file), uncheck subpicture (unless youwant subtitles) then click next.
Click conversion settings, on the device line in the second drop down choose generic.avi.xvid.audiocopy.
Encoding method choose High quality encoding (2-pass).
Set fixed Bitrate to 3072.
This will give you near original quality.
Let us know how it goes and good luck.