I have an ASUS O!Play and a PS3 that I most frequently use to watch movies. Both are connected to surround sound systems. My goal was to create a DVD RIP that played optimally on both systems.
It turns out that Handbrake 0.9.4 does exactly what I need. I just used the "High Profile" turned up the quality from 61% to 69%. It's a logarithmic scale, so this nearly doubles the file size, but noticeably improves the quality as well.
The high profile setting in Handbrake comes with the standard stereo AAC track that will reproduce the surround sound using Dolby Pro Logic II (Just like a dolby surround movie theater). It also includes a second AC3 passthrough of the original Dolby Digital audio stream.
This setup works really well and rips a movie in under an hour.