A superior piece of software used for encoding video/audio, which is powered by AviSynth, dotnetfx and several other command line applications. Noted for it's steep learning curve, but excellent quality video if configured correctly. Mostly used for encoding in Xvid and H.264 formats, which makes it suitable for making iPod-compatible files.
Guy 1: "Dude, I just made a rip of my new Star Wars DVD using the latest version of MeGui. The quality is awesome and it's only 1GB in size!"