Been struggling for ages trying to find a decent application to do this, and ive struck gold:
http://mediacoder.sourceforge.net/download.htm
This little beauty does the following (which PSP Video 9 does not):
1) Select which titles/chapters you want to rip (you can rip the whole disk to 1 file, or whole title, or each chapter as seperate files etc). PSP Video 9 only rips VOB files, so you're screwed if episodes are spanned across VOBs.
2) Encode at 480x272 (full screen with no zooming, looks stunning)
3) Allows control over the volume, in case some dvd's are a bit quiet
Its also open source, meaning zero cash outlay. Ive tested this with the latest official PSP firmware (3.50 I think) but its supposed to work with Homebrew firmwares too.