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I have. Search Google for Videora iPod converter. It's a free tool that converts pretty much any video format into MP4 (the format iPods use).
I have not, however, used it to directly convert a DVD. I always use a program to convert it to a smaller format to store on my hard drive first, so I don't know how well it can directly convert DVDs. I believe it can, though.
On the quality end of things, it does a great job. Just make sure you convert the full screen version, or else it will look wierd. Fifth Gen. iPods don't support widescreen video.
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