VideoRedo does exactly this, but as I found out the hard way, it too often produces garbage MPEG-2 files. I keep trying to get them to fix their product, but despite some very nice people in tech support, their product keeps failing for me, producing MPEG-2 files that contain pixelization, and which have missing frames.
Too bad, because it does exactly what you are requesting.
I rip the DVD (or DVD-RAM) to my desktop using "Quickstream Fix" in VideoRedo Plus. Never had a problem this way except with one badly scratched disc. Of course, YMMV.
Another software that does this is called Movavi Video Convertor with lots of options that all work well. I can only vouch for version 6 that I use extensively - don't know how later updates of this program have worked but should be good.