The optical drive is a probably the main bottleneck, I'm working through the dragonballz dvds as we speak an episode at a time, at about 140fps. This is off a ripped iso image though.
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4gb GSKILL
Asus P5Q-Pro
3870XT
Also, why rip at a higher res than the dvd, and also at 100% quality? Kinda defeats the point of xvid! No compression on that mother, might aswell just rip out the extras and have an iso.
EDIT:
Optical not as much of a problem as i thought!
Just whacked in a dvd of Very Bad Things (great film, see it!) and using the following am getting about 100fps +-10fps.
FairUse Wizard (software used by the 'scene', flexible easy to use and ruddy awesome!)
Xvid 2 pass @ dvd res minus the black bars =720x something.
If your encoding at such high quality, its really pointless. Just the films on most dvd's come in at about 5-6gb so you could keep the dvd menus etc. and just remove random extras and use a nice .iso.
Heck for that filesize you can make a good 720p x264 rip from bluray/hd-dvd!