DVDShrink does all that, and more.
Audio is not compressed in DVD-video when you compress the video. If you're using some kind of a transcoder to convert DVD-Video to MPEG2, it may well be transcoding the audio to MPEG audio or something else.
All you have to do is use Shrink to rip the DVD with whatever audio stream, or streams, you want. With Shrink set to create one VOB. Then re-name that VOB to MPG and you're set.