First version based on ogmtool's README.

README

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+mkvtoolnix 0.0.2
+================
+
+These tools allow information about (mkvinfo) and creation of
+(mkverge) Matroska media files. Matroska is a new multimedia file
+format aiming to become THE new container format for the future. You
+can find more information about it and its underlying technology, the
+Extensible Binary Meta Language (EBML), at
+
+http://www.matroska.org/
+
+Installation is simple. First make sure that you have a recent version
+of libmatroska installed on your computer. Refere to libmatroska's
+documentation for installation instructions.
+
+Now run './configure'. If, for some reason, there is no 'configure'
+script then run './autogen.sh' which will recreate it. If configure
+can not find the Matroska libraries then you'll have to explicitely
+state where they are, e.g.
+
+./configure --with-matroska-include=/where/i/put/libmatroska/src \
+  --with-matroska-lib=/where/i/put/libmatroska/make/linux
+
+After configure has finished simply run 'make' followed by 'make
+install'. If you want a system wide installation then you'll have to
+run 'make install' as root.
+
+The full documentation for each command is now maintained in its
+man page only. Type 'mkvmerge -h' to get you started.
+
+This code comes under the GPL (see www.gnu.org or the file COPYING).
+Modify as needed.
+
+The newest version can always be found at
+http://www.bunkus.org/videotools/mkvtoolnix/index.html
+
+Moritz Bunkus <moritz@bunkus.org>
+
+------------------
+
+Example
+=======
+
+Here's a *very* brief example of how you could use mkvmerge with
+mencoder in order to rip a DVD to a Matroska file with MPEG4 video and
+Vorbis audio:
+
+a) Extract the audio to PCM audio and let mencoder calculate the
+video frame numbers:
+
+mencoder -dvd 1 -ovc frameno -oac pcm -o frameno.avi
+
+If you're low on disk space then you can save a lot of space by
+encoding the sound to MP3 with a very low bitrate. Using PCM is super
+fast and uses a lot of space. MP3 is super small and takes rather
+long. It's your choice. For MP3 use
+
+mencoder -dvd 1 -ovc frameno -oac mp3lame -lameopts cbr:br=64 \
+  -o frameno.avi
+
+b) Extract the audio again, this time to a plain WAV file:
+
+mplayer -dvd 1 -vc dummy -vo null -hardframedrop -ao pcm -aofile audio.wav
+
+At the moment selecting a non-existant video codec with -vc results
+in the fastest audio dump.
+
+c) Normalize the sound (optional)
+
+normalize audio.wav
+
+d) Encode the audio to Vorbis:
+
+oggenc -q3 -oaudio-q3.ogg audio.wav
+
+If you're low on disk space then you can now remove the temporary
+WAV file.
+
+e) Somehow calculate the bitrate for your video. Use something like...
+
+video_size = (target_size - audio-size) / XXXXXXXX
+video_bitrate = video_size / length / 1024 * 8
+
+ - target_size, audio_size in bytes
+ - length in seconds
+ - XXXXXXXX is the overhead caused by putting the streams into an
+   Matroska file.
+ - video_bitrate will be in kbit/s
+
+Remember. If you calculated a video_bitrate for ONE CD and want to
+switch to TWO CDs later on you cannot simply use twice the
+video_bitrate as before - simply because the audio does not get bigger
+as well. Re-caculate the values above with your new target_size
+instead.
+
+f) Use the two-pass encoding for the video:
+
+mencoder -dvd 1 -oac copy -ovc lavc \
+  -lavcopts vcodec=mpeg4:vbitrate=1000:vhq:vqmin=2:vpass=1 \
+  -vop scale=....,crop=..... \
+  -o /dev/null
+
+mencoder -dvd 1 -oac copy -ovc lavc \
+  -lavcopts vcodec=mpeg4:vbitrate=1000:vhq:vqmin=2:vpass=2 \
+  -vop scale=....,crop=..... \
+  -o movie.avi
+
+g) Merge:
+
+mkvmerge -o movie.mkv -A movie.avi audio-q3.ogg
+
+-A is necessary in order to avoid copying the raw PCM (or MP3) audio
+as well.