I am new to AMV creation as well SSJVegita0609 but I am no stranger to DVD ripping. SmartRipper is a program which will copy your DVD's VOB files (glorified MPEGs I believe) to your hard drive. Note that they will add up to 5 or 10GB depending on the disc, the latter for dual layer.
However my experience relating to AMV creation ends there, from then I would use Flask to convert the video to DivX AVI (around 700MB).
Both of these programs (SmartRipper, and if you're interested, Flask) can be found at
www.divx-digest.com. Good luck with your creations.