To me, the h.264 videos with Handbrake are darn-near transparent at 720x480 and are half the size (or less) then the file on the DVD, and in some cases I can reach transparency at 640x480, especially for action-less movies.
If you are going to transcode at an overkill constant quality rate, you may as well just rip the disc to the PC since the file size will be similar and, in some cases, the transcoded file may be bigger than the original.