The best format/settings for ripping DVD to iPad please?

[Anime_fan]

I would like to know if it's possible to watch movies with subtitles (hard-coded preferred)? I have a large DVD collection that I haven't started ripping yet. Can anyone here recommend the best format (avi, mov, ???) and settings (resolution, etc) to rip the movies to, with the primary use case being watching them on the iPad?

 

[Anime_fan]

Thank you! I followed your guide and have ripped a Star Wars and Avatar DVD using the iPad 3 (new iPad) HD Video format. They look good on my iPad, I'm happy that I can get forced subtitles!

But I have a problem - the ripped MP4 files are way in BIG SIZE. The Avatar ends up with 4.67gb! I have only 10GB space on my iPad and it holds only 2 movies! I'm on a flight to the UK soon and want to get 6-8 movies on iPad for the flight.

Is there anyway to rip a DVD down to my iPad and keep the file size around 1.5GB? And without much quality loss if possible?