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Well, basically, its all a question of pixels. Ripped DVD footage is in 720x480 and have rectangular pixels for a ratio of 3:2.
As for normal TV video (or even what you see on your screen), the standard is 640x480 with square pixels to give you a ratio of 4:3.
Thats why when you squish your images down to 640x480, they look better on your computer monitor. So if you're gonna RIP from a DVD and encode for the web, ya it'd be better to squish it down to 640x480 for a better, clearer, ratioed image.
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