DVD with Menus to (MKV or MP4 or AVCHD)

[redlenses]

Is there any tool out there that will take a Standard DVD including menus and Automagically convert it to H.264 w/5.1 AC-3 Audio and convert all the menus (to MKV/MP4/AVCHD(BD-J?)) to function with the newly encoded files?

If not, are there any projects being developed to do this?

[Adub]

No. There was for a little while, but it's completely stopped development.

MP4 has a menu creator (use search), and MKV will have greater menu support in it's upcoming release, but as of now, nothing exists that can do what you ask.