This how-to guide will help you to easily cut out clips from a DVD and convert them to AVI, MP4, WMV, etc. using only free software.
Tools required:
DVD Shrink
WinFF (or Xvid4PSP or Encode360)
DVDFab Decrypter if you want to rip DVD from newer commercial DVD releases
Cut out clips from DVD
In DVD Shrink Open Disc (or choose File->Open [...]