I think Vimacs is correct about the VBR audio, but even so, there are a few things to consider.
AutoGK is not necessarily the best tool for this specific kind of ripping. AutoGK will always try to make the best quality file for a given file size - but the GP2X has fair modest requirements. Therefore, a picture size of larger than 320x240 is wasted. Any larger, and your gp2x will have to resize on the fly, consuming more cpu cycles and battery power. Over time during playback, this can introduce the kind of drag you are talking about, where the picture seems to lag behind the audio.
Also think about bitrates. Because of the small size of the image (320x240), bitrates over 170-200kps are unnecessary, and can also introduce lag because of the processor overhead of decoding high quality video.
VBR audio does sound the best, but is not "standard". If the header of the AVI is not correctly written to allow VBR, it can be interpreted as CBR, resulting in bizarre and massive lags over time.
If you are determined to use AutoGK, I would advise you to override most of AutoGK's default settings (use CTRL-F9 to get into the nuts and bolts). Hard set the image size, specify CBR audio, and limit the bitrate to around 200kps. All of which renders the point of AutoGK null - this programme is for producing the highest quality AVIs to fit on a certain number of CDs, not for transcoding down for portable devices.
gp2xuser23 is on the right track, and I'd urge you to follow his advice. However, if what you like about AutoGK is the simplicity of the interface, then why not try a different ripper?
DVDFabDecryptor is an attractive package that can rip from DVD straight down to portable formats with a single click, though it is not free.
DVDx is an excellent free tool, though slightly more complicated, that can do the job without even copying the DVD to your hard drive first. I used it to prep my Farscape discs for the GP2X, and it was painless.
Both of the above tools are less complicated than learning VirtualDub and neither requires you to rip the disc first.
Good luck