If you're going to re-encode, then you should start with the best possible source for better results.
Of course only you can determine whether you can tell the difference between DVD (original) -> MP4 and DVD (original) -> DVD (SL) -> MP4.
Making MKV, from single layer DVD backups
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Re: Making MKV, from single layer DVD backups
What Romansh said.
As far as quality it really depends on what you are watching it on. I take most of my BD rips and re-encode them down to 720p at 4000-5000kbps so I can stream them wirelessly throughout the house to vearious playback devices. When I watch them on my little 32" LCD in the bedroom they look just as good as the source material, but when I put them on the 55" Plasma I can see banding and occasional artifacting that are not present in the source material.
But I would say for 95% of your playback situations, you won't notice a difference in quality in your shrunk DVD's as long as they were re-encoded properly.
As far as quality it really depends on what you are watching it on. I take most of my BD rips and re-encode them down to 720p at 4000-5000kbps so I can stream them wirelessly throughout the house to vearious playback devices. When I watch them on my little 32" LCD in the bedroom they look just as good as the source material, but when I put them on the 55" Plasma I can see banding and occasional artifacting that are not present in the source material.
But I would say for 95% of your playback situations, you won't notice a difference in quality in your shrunk DVD's as long as they were re-encoded properly.