Use SmartRipper 2.41, It is a very good VOB cutter. You download this software from this address:
http://www.doom9.org/Soft21/Rippers/SR241.rar
(Double-click the link or use Flashget to download, as Right-click & save target as don't work)
It can cut out chapters of the huge VOB file of the DVD. The quality of the cut out chapters are exactly the same as the huge VOB file of the DVD, with the following details:
Type: Interlaced MPEG2
Bitrate: 8.300 Mbps
Framerate: 29.970 Hz
Resolution: 720x480
Aspect ratio: 4x3
Once you download & install the software, just insert your DVD to your DVDrom. Firstly under Settings -> Movie -> File-Splitting, choose "every chapter". Then you are ready to split & cut out the chapters that you want. The extension of the cut out file is ".vob", so you have rename it to ".mpg". You can use FTP program to rename the file extension. These files quality are VOB so are great. I have used this software for my Memorial address Bonus DVD to cut out the PVs & i can say this software is great. The process time during cutting is also very fast. If you still got any questions regarding this software, feel free to reply here. I will try my best to help you.