Well its been a while since i did anything like that in earnest (i recently burnt a backup, but it was of a disc i ripped months ago) but I've found Smartripper to be a good reliable disc reader (not really any good at doing clips, IIRC, however), then i feed it thru DVD2Avi to make it readable, and Virtualdub and/or TMPGEnc to do the final intro/credits-clipping, cropping, filtering, encoding etc.
Maybe a bit more complex than what you're looking for though... that's what i'd used to make DivXs (VDub) or MPG-based VideoCDs (TMPGEnc) of entire movies.
Not sure on what to reccommend for an all-in one solution to just grab a small section and transcode it, or why it's not working for you (at least, without you telling me the setup! come on man!

), but I do know somewhere you can go ask a few digital video gurus -
http://www.videohelp.com. Thats where ive got the slivers of information i have anyway.
reminds me, i must nip back and find out the name of that shareware prog that can write dual-layer DVDs, as i dont have anything to do that yet ... despite a dual layer writer and a couple of DL blanks sitting around
theres software reviews, freeware/shareware sources, guide tutorials etc there as well
at the least I would suggest you get a hold of the shareware version of TMPGEnc, as even if you dont feel like a full re-encode, it can take your MPG file and attempt a re-multiplexing of the video and sound streams in case the ULead thing has encoded it funny. It can also give you a basic summary of whats in the file (video, audio, and control streams) to see if somethings missing.