Handbrake can process most common multimeida files and any DVD or Bluray sources that do not contain any kind of copy protection.

Outputs:

•File Containers: MP4(M4V) and MKV
•Video Encoders: H.264(x264), MPEG-4 and MPEG-2 (libav), or Theora(libtheora)
•Audio Encoders: AAC, CoreAudio AAC/HE-AAC (OS X Only), MP3, Flac, AC3, or Vorbis.
•Audio Passthru: AC-3, DTS, DTS-HD, AAC and MP3 tracks
Misc features:
•Title / Chapter selection
•Queue up multiple encodes
•Chapter Markers
•Subtitles (VobSub, Closed Captions CEA-608, SSA, SRT)
•Constant Quality or Average Bitrate Video Encoding
•Support for VFR, CFR and VFR
•Video Filters: Deinterlacing, Decomb, Detelecine, Deblock, Grayscale, Cropping and scaling
•Live Video Preivew
•Built-in presets for common devices