Update. After transferring several movies from DVD to the Surface Pro 2, I have found the following to give me the best result:
Read IO: LIBC (the others ASPI and SPTI are good but not as good as LIBC.
Video CODEC: MGEG4 seems to work the best all around.
VIDEO OUTPUT: .MP4 is by far the best. The file is larger than .AVI but the "rip" is much faster (actually twice as fast) and you get a wide-screen output file designed to play on the surface pro 2. The detail of the .MP4 output is the same quality as the original DVD.
I have now deleted all the previous .AVI video files and now use only the .MP4.
In rare cases, when you still get a scramble video output file after ripping, change the Read IO from LIBC to ASPI and rip again and that usually fixes it.
Peace out.