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One way to rip videos is to plug the cables from the console into a digital video camera and hit record. My brother put together a whole disk of his favourite game movies using this highly illegal method.
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I'm not sure about this, if the transfer method is lossy you'll end up having a low-quality recording in comparison to the original files.
I rip directly from the game discs using the PSXmc utility. That way, I don't have to worry about quality loss. After that, I use Vdub to save every frame as a picture.