OK, here is the story.
Handbrake will rip DVD's into a number of different formats, one of which, .mp4, is playable on the iPod. The caveat here is that using Handbrake's H.264 encoder to rip your DVD's will result in a file that plays in Quicktime, imports flawlessly and plays in iTunes but WILL NOT play on your new 5G iPod. The reasons for this are speculated to have something to do with the exact settings Handbrake uses for it's H.264 encoder being slightly different to what Apple prescribes for playback on the iPod.
The good news is that you can rip a DVD to .mp4 format using the MPEG-4 encoder in Handbrake and it will result in a file that, whilst not appearing as good a quality as H.264, will playback properly on your iPod.
Hope this is the information you were looking for.