Yeah, that's pretty easy on the processor, especially since DVDs are MPEG-2 in the first place. Try H.264, serious difference in quality at bandwidth, but takes much longer to encode, and more CPU power to decode.
That was the first DVD I ever ripped. I didn't explicitly time the exercise but my recollection was start to finish took about 15 minutes.
I really want to see if I can find some way to try ripping and converting HD to H.264.
I'm still happy spending small money buying used business class desktop PC's and Xeon class workstations but it is nice to know what the system limits are lest I do something that will bring a system to its knees. BTW I have a Dell Optiplex GX280 with a 3.4GHz CPU and a Dell Precision 670 workstation with dual 3.6 GHz XEON CPU's. Spent less than $500 for both and have been very, very satisfied with their performance.