I am using Foxreal's software. I found their customer support to be excellent and the program works great. There is other post here where people have talked about the various program and settings that they have used. Foxreal also has on their website additional information about using settings for various equipment.
I've been using pavtube which will rip blu-ray and standard dvd. Settings are h264 for video codec, aac for audio codec. Ripped at 1280*720 which is the recommended setting on the RIM media guide http://docs.blackberry.com/en/smartp..._(English).pdf
It works really well but isn't free.
I am using DVD Catalyst with excellent results. I would note that your question is slightly ambiguous. DVDs are themselves at a lower resolution than 1024x600. DVD Catalyst converts them at full DVD resolution so that the Playbook brings them to 1024x600 on its screen. It does so automatically, with builtin settings for the PB which you can modify in Power User mode.
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