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How to Convert DVD to iPod with freeware (Mac) Part 1
Optional - Under Quality, select 2-pass encoding, as shown in Picture-7. This takes twice as long to encode, but it improves the video quality and doesn’t make the file any larger.

In the Audio section, for Language 1, select the audio track in your preferred language, as shown in Picture-8. Given the choice between MPEG and LPCM, choose MPEG.

The Sample rate is entirely up to you. Higher sample rate = higher quality audio = larger file size. The video iPod is compatible with any of the sample rates supported by Handbrake.

For Bitrate, you can keep the default of 128, or select a rate up to 160. Higher rate = higher audio quality = larger file size.

Click Picture Settings. In the Picture Settings dialog, decrease Width until either it reads 320. Handbrake will auto-adjust the height to match. For a full-screen movie, the height will end up at 240; for wide-screen movies, it will be lower.

Step4. Close the Picture Settings dialog and click Rip. Encoding time depends on the speed of your Mac, the length of the movie, and whether you selected 2-pass encoding. Handbrake will display a progress bar, as shown in Picture-12.

When encoding is finished, quit Handbrake. Run iTunes. Find the .mp4 file that Handbrake created and drag it into your iTunes library, or select Add to Library… from the File menu and select the encoded movie.
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How to Convert DVD to iPod with freeware (Mac) Part 1
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