The quality looks fine for me. Of course from the screenshots you can't really compare to DivX, XviD because you don't have the important details like bitrate, etc. I think in terms of video quality DivX, XviD, ratDVD are all on the same level but I prefer ratDVD to get the complete DVD.

But I agree that it'll be interesting to see if DivX integrates menus the same way that ratDVD does. Sad thing is that they will NEVER be able to convert it back to DVD. And for sure I won't buy another DVD Player only to get DivX menus (if this ever happens).