As long as you have a DVD player in your comp you can rip directly to your drive.

If you are trying to put it on another disc though you are going to have to compress it to a smaller file format. If its going onto a CDR then use either DIVX or XVID (XVID is better quality than DIVX is btw). If you are going to burn it to DVD you will have to compress it some but not as much as you would with a CDR so the quality will be better overall.