Milo wrote...
How do you convert DVD files to high quality MKV files like what I can download online? Or are those converted from Blue-ray?
It's all about your source.
The new animes that are being released are high def TV streams, the Bluray releases like the new Evangelion movies are direct rips from the BD discs themselves, same with DVD sources.
MKV is only a container not a video format, think of it as the DVD that holds the film and the subs relating to the film and all the data to sync it. So therefore an MKV's video output would only be as good as the source that was used.
You can get the MKV muxer from their site
here.