Well, I muddled through some test files. Was able to convert to MKV and then from MKV to mp3. Interesting thing of note was that although I set the bitrate to 320 Kbs, I got almost twice that on playback. Not that I'm complaining because I like high quality. But it is weird that the software "violated" the setting.

Anamorphic to none. Tried that, worked...

Set "Anamorphic" to "none". That will allow you to change the resolution.

Are you talking about the Picture tab with regards to decreasing resolution? Mine is all greyed out...

Decreasing the resolution (first tab) helps a lot to decrease the time it takes to encode the video. If you want to have different tracks in separate MP3 files, it's better that you encode it by chapter as I mentioned, setting each chapter to encode at a time then "Add to Queue" (then you select the next chapter, then "Add to Queue" again until all chapters are added to queue). When it's done you click "Start" and Handbrake will create one MKV file for each chapter you selected.

I did set the video settings to the lowest quality (using the slider--all the way to the left). I didn't set any other video-related configurations. The video is a 2-hour concert, and it took a little over an hour to process. My computer is old and slow (2793 GHz), so it may take a while longer. I do not know if 1 hour is unreasonable or not.

Am I supposed to end up with 1 MKV file at this point, or am I supposed to use Handbrake to separate it all out via chapters?

Now, as for mkvExtractGUI and mkvcleaver. You need mkvtoolnix.
http://www.videohelp.com/tools/MKVtoolnix
Run MkvCleaver - the process is the same with MKVExtractGUI2, but let's go with cleaver for the sake of example. Click "Locate mkvtoolnix". Select the folder where it was installed. Then click "open mkv files to process". Select your mkv file/s. Then you'll have the file and an "audio" checkbox below it. Tick that checkbox. Click Extract Tracks, and you'll have a separate file with your audio. You're done. If you have many mkvfiles, tick the audio checkbox on the Batch mode column instead, that's all.

Well, first. Did you set the video settings to a low quality? Say 320x240 resolution, and quality factor 51? This way the encode will be fast and small. Second, yes, you'll end up with one MKV file with everything, unless you set the Chapter setting in the top area ("Source"). "X through X". Say 1 through 1, 2 through 2, 3 through 3. That way you'd have one file per chapter. You have to change the setting and click "Add to Queue" for each chapter.

BTW, I used Handbrake and I ended up with a huge mkv file (am I doing this right?). There were several chapters (22) on the original DVD, so am I supposed to end up with 1 mkv file or 22 separate mkv files?

I have MKVExtractGUI and mkvcleaver (separate programs). How do I use them to get at the audio? Do I need to make any special settings?

Yes. Also remember to set the file type to MKV so that you can use MKVExtractGUI/mkvcleaver to easily extract the audio after it's done.

Thanks. So I set Mixdown to Stereo/Sample Rate to Auto then?

Handbrake won't allow you to encode to FLAC, unfortunately. But you can use "AC3 Passthru", which takes the raw audio - if it works you can convert it with another tool later. Another option is to use MP3 320k. Mixdown won't matter unless your audio has more than 2 channels. Leave DRC at zero. Hope that helps.

Hey, thanks for responding to my inquiry on converting VOB to FLAC. Any idea what I would set for options on the Audio tab? I did a search online for tutorials that would help me, but it seems that there are not too many people who use Handbrake to do this sort of thing. Thanks...