Convert DVD with subtitle stream to DivX with same subtitle stream(selectable)

Hi folks,

I am new in here so bear with me.... I simply want to convert my DVD movies to DivX format whilst maintaining the capability of subtitles ie maintaining the subtitles stream (english for hard of hearing). I think I can muddle through and say get a DivX format movies which say has subtitles "hard burned" into the video stream hence unable to turn them off. [I am partially hearing so sometimes I need them other times I do not hence the dilemna].

Only other solution is possibly .... is there any software that basically copies a DVD onto a PC such that .....
(1) the space saving benefits of VOB/MPEG2 to DivX are maintained
(2) Convert audio stream to mp3
(3) preserve subtitles (english) stream in final processed DivX file whilst remaining selectable.
ers etc (no need to worry about old DivX DVD players).

Just that I am simply trying to make up some space by putting my movie collection on hard disk and putting the dvds in storage.

Hope you can point me in the right direction....