A VOB, if built for a standard dvd is a mpeg-2. Ya, to convert one into an AVI, use divx or xvid (mpeg-4) for a smaller file size. Im assuming when YOU say AVI you mean DV ntsc which doesn’t use heavy compresssion therefore is a larger file size. The value of converting a VOB to a DV ntsc AVI would be to edit it I guess. If the dvd was built with dolby auidio then you would need a utility to convert back to a mpeg 2 with an audio stream, can’t really help with that. If it uses PCM audio then you should be able to just rename the files extension to .mpg. It is already an mpeg-2. I rambled sorry if I wasn’t much help. GL 😛
-Andy B.
http://www.avclubfilms.com