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Mark EpsteinFlag for United States of America

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DVD ripping: What is best video codec? h264 vs DivX vs Xvid? Best container: .avi? mkv?

I am ripping DVD's and will take portions of the files to play on a 46 in LCD 1080p monitor. THe files will remain on a computer, probably will play with VLC player. Need really good picture quality.

What is the best codec to use and best container?
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Merete
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Can you play the MPEG via a computer? What player would you recommend?
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fredshovel: I appreciate your no-nonsense comments, as I do from Merete. Here is what I am doing, then please give me your thoughts:

I am building a set up for internal marketing in my office. I am taking several DVD's that contain product marketing materials and want to rip them and store them on a computer so that I can play them on demand, or in any order I wish, or even in a playlist. The LCD monitors are new Sharp Aquos 1080P. ALl set up for HDMI. THe pc's haven't been configured yet, so I can build anything, no need to retrofit here. How would you do it? (the ripping, codec, container, pc, video cards, software, etc.)
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Wow! That is a lot to digest. I will look into those suggestons. HDD size is not an issue. I will probably use a NAS for that.
As for the video card that supports two  monitors, is there a way to support two sound channels as well???

Do you prefer DVD shrink over DVDfab?
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M_Epstein,  did you forget your question?
Any progress