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dvdcatalyst
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How long, may I ask, did it take you to convert the 8 Gb movie to Ipad 3 format? According to OP, 4.7 Gb needs 10 hours.
Actually the 8+GB (not entirely sure how big it got, but it was at least 8GB) was directly from Bluray using DVD Catalyst 4 and AnyDVD HD (only needed if you want to do Blurays), and using my quad-core laptop, it ran a bit faster than realtime. A 2 hour movie, from Bluray, using a 1080p profile in DVD Catalyst 4 (so the original quality of the Bluray is kept, including the 1080p resolution), took about 1 1/2 hours or so. On the same system, I convert DVDs at about 7x realtime, so about 16 minutes or so for a 2 hour movie, also visually similar as the actual DVD.
These were the settings I use for my iPad3
iPad3 Video Settings | Tools4Movies | DVD Catalyst 4
8GB for a DVD is not right. The DVD content itself is not even that large, and that is with the old MPEG2 compression format. iPad-optimized video uses H264 for the video format, and that offers the same visual quality as DVD at about 1/3rd of the size.