btw, there are more then one compression routines.
Some are lossy... some lossless..
mpg, mpg2 (and most image / sound files) are lossy. Why? They can drop the size down by a HUGE margin. And most people cant see them.
There are lossless algorithms (like zip, rar) which will always get the exact same item.
But some interesting ones.
lossless video alg? Yup, there are some out there. they only store the changes from one frame to the next. So screens that don't move that much (background...especially in cartoons with common colors). This is a HUGE help in video for many screens. And can be better then ZIP files since the compression goes between screens logically.
So what is mpg's and most video?
combination. They do the changes, then add a lossly attributes to them (only if they change by so much). Then they compress them. (or whatever the order and scheme)...
But it is Lossy... And your stuck using it.
The dvd2dalphne. Run it again. I got different results when I did it on a faster computer (really). One missed some sound at parts...
Also, for best looks. Remember the resolution of the screen your playing it on. Stretching the screen will make it look worse then most lossy algorythms.