I would recommend StaxRip tto anyone who is casually interested in encoding movies but doesn't want the hassle of more advanced programs like Megui.
It supports various containers (avi, mp4, mkv etc.) and you can either do xvid or x264. It is fairly easy to use and creates good quality movies.
Take a look at this guide:
http://www.afterdawn.com/guides/arch...th_staxrip.cfm