My current preference is Cyberlink Powerdirector 3 which will convert almost anything to both MPEGs AVIs and streaming files.
And Dr. DiVX to convert almost anything (including VOBs) to DiVX AVIs.
(Dr. DiVX even has presets for DiVX "Handheld" and DiVX "Portable")
All you then need is a good fast ripper to obtain the original VOB files for both programs.
Using these two I can pretty much convert most formats into most everything else!
I tend to use them to convert Music videos into MPEG for the EPIAs hardware decoder.
Should take your 4 stage process down to 2 at least.