Richie,
[Richiedude] “Is it possible to convert AC3 to wav files?”
Yes, but you don’t need to if you simply want to chop up, accurately and with no loss, MPEG2 encoded with AC3 from a DVD for later re-authoring. Get yourself a low cost MPEG editor. It’s a very handy tool to have around. The best on the block right now seems to be VideoReDo Plus:
https://www.videoredo.com/ProductPlusSpecifications.htm
It costs $50, can be downloaded for a free trial, will rip your non copy protected DVD (even from DVD-RAM if your DVD-ROM drive supports it) and allows you to smart edit the files to frame accuracy with the only lossiness from re-encoding being around the cut points. It’s AC3 capable so the AC3 stays with the file, or you can alternately, if you wish, transcode the audio to WAV or MPEG1 Layer 2.
TMPGEnc ($77) and Womble ($100) also make MPEG editors but they are more expensive and I don’t think quite as capable as VideoReDo.
Ron Shook