Now that you've got your VOB files from the DVD (extracted with Mac the Ripper), it's time to make them into a more "palatable" format for iMovie. (Note: If you used Handbrake to rip from the DVD, it's not mandatory to go through this process, except to trim down the length of your video clips.)
For this tutorial we're going to use MPEG Streamclip. In order to get MPEG Streamclip to convert VOB files over to Quicktime, it'll need the MPEG-2 Playback Component from Apple. This is about $20 and well worth it. It may be the only money you'll spend on Mac vidding (with the exception of any money you may have spent to acquire iMovie). If you cannot afford the $20 at this time, use Handbrake (instructions on previous page).
When you open a VOB file in MPEG Streamclip, you'll find the folder (which Mac the Ripper created) which contains your DVD's VOB files. You'll need to find a large-sized VOB file (probably 1 GB in size) in the VIDEO_TS folder. Open one of these files and isolate the scene you want to make into a clip. Read the "Vidding 101: Dummies" tutorial about ripping clips in MPEG Streamclip. It gives step-by-step instructions for both Mac and PC.

Screenshot of MPEG Streamclip
For this tutorial, it is recommended that you keep your video clip at one minute or less. ("Start small," remember?)
You might not notice this, but the above video clip (seen in the MPEG Streamclip screencap) has bad aspect ratio. It's supposed to be 16:9 aspect ratio (rectangular) but it's more of a "square" rectangle. The faces are too long and skinny. This sometimes happens when you open a DVD's digital files. Don't be worried if you see distortion—you're going to fix it with MPEG Streamclip!
I mentioned on in the Mac Vidding Introduction that I'd tackle the issue of aspect ratio, and here's the first example. Not only are we going to convert this clip over to Quicktime (so iMovie can open it) but also we're going to fix the aspect ratio, so it's no longer too long and skinny. (To learn more about aspect ratio, check out my Frame Dimensions tutorial.)
When I first wrote this tutorial, I wrote it so any Mac vidder would process clips in the same way—convert to DV MOV. Now I'm changing that, and am showing iMovie users (iMovie users ONLY) to do it a different way.
The interesting thing with iMovie 6 is that as it is "importing" your clips in, it's actually converting them to DV. So why make DV clips that will just be converted to DV again? Some vidders have reported funny borders and distortions when they imported DV MOV clips into iMovie 6. So we're not going to do that. We're going to "cheat" and use high quality H.264 MOV files. The quality in these H.264 MOV files will be very good, so when iMovie converts them over to DV, most of the original detail will still be there.
FYI: When editing with iMovie 6, keep in mind that DV video can get very large in file size. Try to trim your clips down to small scenes (not the whole movie or show ) because the more you import into iMovie, the bigger your iMovie project file will get (and the longer the "importing" process will take). Just make clips of the scenes you are going to use.
Open your VOB files in MPEG Streamclip and choose to convert to Quicktime. Select the H.264 codec for compression.

Pardon the Windows screenshot. But you can figure it out, can't you?
You're going to convert your DVD to a high data rate (bitrate) H.264 MOV file. Check the box that says "Limit Data Rate" and type in the number "3000." (You can go higher if you like.) Sound should be either MPEG-4 AAC and at 256 kbps (you can go down to 192 if you like).
If you know that your video will not be using the audio from the DVD, select NO SOUND as it just makes things easier for you as you edit your video.
Choose the correct aspect ratio setting for your footage (check the frame size which has [16:9] next to it if your DVD is widescreen, otherwise, go with the frame size for [4:3]).
DO NOT DEINTERLACE unless you see little horizontal "comby" lines in your video (they show up more during scenes with movement or action).
Then you're ready to go! Click on the "Make Movie" button and wait for your clip to be processed.
To get started, go to "File >> Export to Quicktime." This window will pop up:

At the bottom of this "Vidding 101" tutorial page, I give a rundown on how to prepare a clip for use on the Mac. I choose to export a Quicktime Move. Under "compression," I selected DVCPRO 50 PAL, since my clip is PAL (Region Two DVD). (If you are also planning on using the clips for Final Cut Express, choose DV PAL or DV/DVCPRO NTSC.)
To make sure you get the aspect ratio correct, click on the "options" button (top right) and pick the appropriate aspect ratio (often this is 16:9, but you must be sure of your video's aspect ratio). Usually it won't hurt to choose "progressive" as the scan mode.
The quality should be at 100% and audio should remain at "uncompressed." The philosophy here is "Extremely good quality in, extremely good quality out." Meaning, the clips you import into iMovie should be as detailed and sharp as possible, and the video that you export out of iMovie should also be at the highest possible (sharpest) settings. Then when you convert the finished video over to a more web-friendly format, it'll be able to keep a lot of that detail. In some cases, you can get your finished fan video looking almost as sharp and clear as the DVD!
There are some other settings to consider in MPEG Streamclip. One is the "Deinterlace Video" (checkbox at middle left). This removes the horizontal lines that sometimes appear when there is more movement in the video. If you see these horizontal lines in your clip, definitely check this box. Very often, home-burned DVDs have interlacing as well as many NTSC (Region One) DVDs. But the only way to know for sure if your clip is interlaced is to look for it. (Read more about interlacing.)
As soon as you choose your settings and click "Make Movie" in MPEG Streamclip, it'll start encoding. When the MPEG Streamclip has finished converting, you will find that its file size might be rather large. This is normal. It is recommended for you to have ample disk space set aside for vidding.