How about an option to interleave the raw AC3 audio
with the AVI?
I've learned that AC3 is a very efficient and accurate
audio encoding format. Re-encoding to MP3 doesn't save
much (if any) space, and certainly doesn't help the sound
quality. With the availability of this new AC3 playback
filter, there is no need to re-encode the AC3 audio
present in the original material (i.e. VOBs).
This filter/codec is amazing:
http://sourceforge.net/projects/ac3filter/
The author also created a winamp plugin supporting AC3.
Guide for VOB to DivX w/ AC3:
http://www.xs4all.nl/~merlinx/ac3guideeng.html
The current approach to using Flask to produce AVI w/
AC3: