I've been doing some videos lately, combining tracks from DVDs.

[link|http://handbrake.m0k.org/|Handbrake] - This converts the files in VIDEO_TS to MPEG4 format

[link|http://www.apple.com/quicktime|Quicktime Pro] - I select the clip I want and export it to a DV file.

(I think [link|http://www.videolan.org|VLC] can transcode directly from VOB files but I haven't figured out how to do it.)

After that I use iMovie HD to pull the clips together along with audio as I like. It's pretty easy to use.

To see some of the stuff I put together, you could check out [link|http://youtube.com/profile?user=tsinclai2002|my YouTube page].

I recently upgraded to Final Cut Express HD once I found out I could get the academic pricing. A bit more complicated than iMovie, but a lot more powerful.