Convert 3 4 minute DVDs to AVI or High Quality FLV

Hi Experts, I have three slide shows on DVD with music in the background. Each is about 4 minutes. I need you to convert them to smaller avi files that are compatible with most OSs. Sizes is not a huge issue but they would ideally be below 250mb each. I have already tried doing this but I get pixelation when images fade from one to the other. And so I am posting it for somebody more competent to do it here :) These will be placed on USB thumb drive to be given to clients who need to be able to play them on any setup (use most common codec?). Let me know if you believe FLV would be better than AVI. They should look good, without pixelation at full screen. Project winner will receive 3 ISO files of the DVDs to convert. I expect this to be an easy conversion job by somebody who knows how and bids to not exceed $30. Thanks in advance.