Yes I know the OP asked for free, I've been reading for over 45 years now (sorry I couldn't resist).
As too the second question, I am using the built In IPad setting.
I tried Handbrake and was satisfied with the video quality, so I tried the paid program. I was simply was offering a suggestion, the OP can try both a choose the program that fulfills his need.
Off my soapbox...
Cheers,