Depends on what you're after. If you're only eve going to watch the DVD on your GP32, then yeah, go straight there. Otherwise, sticking in the 700mb phase does help in 2 ways.
Firstly, it means you've got one that's of perfectly watchable quality on your computer. This is entirely useless if you own the DVD and don't mind putting a disk in every time you want to watch the film/series/whatever.
Secondly, it probably speeds things up if, e.g., you find yourself needing to tweak a few settings. If the file came out at 129mb, for example - just need to drop a couple of bits or perhaps the framerate a bit (framerate would make a difference here, simply because its so close - normally it only makes about 5-10mb anyway, though, even dropping from 20 to 10 fps). But if you don't have the interim stage at 700mb, you'll need to rip it again. Of course, if you own the DVD this may not be too much of an issue, but I'd be surprised if it were faster to rip from scratch than to re-encode a 700mb file from VD.
Clearly, if you're doing the borrow-from-blockbuster-then-rip thing, though, its definitely worth the 700mb file in the meantime. But who here would do that lol? ;-)
