Just like audio files you'll get better results by separating the ripping and encoding process.
Consider ripping your DVD or DVDs to a hard disk first, I use RipIt as I find VLC to be flakey for rips. Then, open each DVD rip in Handbrake, choose your encoding method e.g. Apple TV2 and add it to the Queue. It's best to leave this overnight as it can take a lot of time, perhaps and hour or maybe closer to two in your case. Once the files are complete you can can add them to your iTunes library ready to view or transfer to your iOS devices.
If you have the space hold on to your DVD rips. That way you can encode them again as and when formats become more efficient. I often need functionality not offered by the 'Apple' formats e.g. flexible subtitles so I often encode DVD rips twice.
Keep in mind most modern Macs use DVD drives from manufacturers that throttle DVD ripping to prevent overheating and improve power management etc. If you have a lot of DVDs an external DVD drive might be a good idea.