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Lots of DVD ripping software around. My personal favourite is a commercial one sold by a company called "Aiseesoft", but there are many free ones around, too.
As far as resolution goes, I generally rip at a resolution of 640x480, which is a good compromise between size and quality (it looks good on my 32" TV, and great on portable devices). The Fire has native support for MPEG4, so choose that, rather than AVI.
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