ok, everytime when using gordian knot I get to the save and encode it runs through the thing just fine and encodes the audio.
But i get this error and it won't make the avi file

VideoSourceAVI error:The source image format is not acceptable. (error code -2)

anyone know what's going on now?

the VOB's work and i see video. But it won't put them all together.

heres what the log says

3:43:22 PM: Finished DivX5-First Pass: Duration: 21 seconds.
3:43:22 PM: Trying to open Log-file.
3:43:22 PM: Error: Could not open D:\DAY_OF_DEAD_DISC2\VIDEO_TS\vdenc.log
3:43:22 PM: Error: Could not count encoded Frames.
3:43:22 PM: Speed: 541760.113 Frames per Second.
3:43:22 PM: WARNING: Number of counted frames differs from settings!
3:43:22 PM: WARNING: Settings: 69596
3:43:22 PM: WARNING: Counted: 0
3:43:22 PM: WARNING: Difference: 69596
3:43:22 PM: Correcting Bitrate...
3:43:22 PM: Original Bitrate = 1048 k(=1000)Bits/s
3:43:22 PM: Error: Correction impossible.
3:43:22 PM: Now encoding at 1048 k(=1000)Bits/s

I got that once upon a time. To get rid of it, I reinstalled divx and reprocessed the dvd. Didn't pop up again. Don't ask me why it happened but that fixed it for me at least.

make sure your following the guides exactly at http://gknot.doom9.org . Failing that, try an xvid encode with gknot