Hi,
Welcome to the forum.
Please tell us a little more, what's your source, what's your aim for the backup?
I've got the idea you just want a kvcd, FAST, right? You have DIKO, and want a bin/que file. So I don't think you are here to seek the outer barriers of maximum video quality versus space, using scripting, filters, and other tweaks.
If you want the best quality look at the suggestions Dialhot gave you in your earlier question. (dgindex, paranoia, etc)
Simpler way is indeed diko. The most info is at the forum of vmesquita, you know, the site where you bought diko