Ripping in File mode and ripping all the files is the way to go. This leaves you with a rip that's playable in almost anything without any extra tools.
If you want to save some space, take a look at DVD Shrink, it will let you rip just the main movie and audio tracks you want, allowing you to save some space without sacrificing any quality (make sure you have DVD Shrink set to "No Compression").
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