Another vote for Handbrake. It's very well designed - easy to use for a newcomer, whilst also offering more intricate options if you choose to head that way, if you're seeking the Ultimate Compression™. Importantly (for me = it's cross-platform, too, so it's a happy bunny under OS X, Linux, and Windows.
If you are going to be recoding more than once in a blue moon, it may be worth looking into the command line encoders - like ffmpeg - and (learning how to) scripting a solution. This is what I do for my recodes.
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