Like everyone else said, you don't want to compress your VOB files because you'll reduce the quality. Compress when you've rendered the vid in some fashion! You won't regret it. Your footage will be much shinier.
I can't add much useful information, because I actually do what you shouldn't do. I open my VOB files up in Virtualdubmod and then cut clips from the VOB file. I use a lossless codec to encode the clips -- namely UT Video (http://umezawa.dyndns.info/wordpress/?cat=28). It is lossless, technically, but I believe there is some quality loss. I tweak clips on my timeline in sony vegas. Then I render using debugmode frameserver (http://dancingvader.livejournal.com/4364.html).
My vids are not the shiniest vids of all, but it gets the job done for my purposes.
You might also check out A & E's Technical Guide to Audio and Video (http://www.animemusicvideos.org/guides/avtech/). It is basically a Bible of vidding tech and useful information that might help. Also check the memories in this comm if you haven't already (http://www.livejournal.com/tools/memories.bml?user=vidding). Full of useful tips and pointers.
But each vidder has their own process which is mostly based on their own setup and the technology/techno-know-how they have.
no subject
I can't add much useful information, because I actually do what you shouldn't do. I open my VOB files up in Virtualdubmod and then cut clips from the VOB file. I use a lossless codec to encode the clips -- namely UT Video (http://umezawa.dyndns.info/wordpress/?cat=28). It is lossless, technically, but I believe there is some quality loss. I tweak clips on my timeline in sony vegas. Then I render using debugmode frameserver (http://dancingvader.livejournal.com/4364.html).
My vids are not the shiniest vids of all, but it gets the job done for my purposes.
You might also check out A & E's Technical Guide to Audio and Video (http://www.animemusicvideos.org/guides/avtech/). It is basically a Bible of vidding tech and useful information that might help. Also check the memories in this comm if you haven't already (http://www.livejournal.com/tools/memories.bml?user=vidding). Full of useful tips and pointers.
But each vidder has their own process which is mostly based on their own setup and the technology/techno-know-how they have.