encode to 480x272 MPEG-4 ASP (Xvid), MP3, into a .AVI-file,
put the file on the device with mtp-tools.
Detailed version
Add a package-repository which does include software that is not free to use everywhere (specifically you need libdvdcss and lame). In Sweden, where I live, users are not obliged to respect software patents claims.
There are different software packages that can be used to perform this task. Here I describe how to accomplish it with avidemux. An alternative that seems promising is ogmrip. With the specification given in the Summary above, it should be easy to solve the problem with ogmrip instead of avidemux.
Install the needed packages: mtp-toolsvobcopylibdvdcss2avidemuxlame
apt-install mtp-tools vobcopy avidemux lame
1. Decrypt the content of the DVD by copying to VOB-files to harddisk
Note: simply copying the VOB-files using normal file-copy tools will lead to read-errors. The files must be decrypted, which is done by vobcopy.
Unfortunately, avidemux does not support reading from encrypted DVD:s, so you need to decrypt the content of the DVD, which is made by vobcopy Also, avidemux needs to be able to write a index of the mpeg-files and since a DVD is read-only, that would have been another problem, if the files were not copied to harddisk first. It would be nice to skip this step, e.g. by using fuse/dvdfs and symlinks, but the major distros does not seem to include binaries for dvdfs.
Put the DVD in the DVD player.
make the target directory the current directory of the terminal
execute vobcopy
mkdir ~/my.temp
cd ~/my.temp
vobcopy
2. Reencode and resize the movie to a resolution no greater than 480x272 pixels
Open the VOB file (it is in ~/my.temp) with the smallest number in the file name, e.g. My_movie1_1.VOB
Choose "Yes" to the question "There is several mpeg file, append them?" Ignore the horrible grammar.
Choose an audio track, by using the menu "Audio/Main track", and choose the first track, nr 0, unless you want something special.
In the Video Menu, in the left panel of avidemux, choose MPEG-4 ASP (Xvid)
In the Audio Menu, also to the left, choose MP3 (lame)
In the File Menu, also to the left, choose AVI
Under the Video section, there is a button Configure, choose that and type in 1000 as the Target bitrate (kb/s).