There is another option but it will cost a few hundred dollars. Buy an analog-to-digital converter box. An example would be Canopus. (http://www.canopus.com/products/ADVC55/index.php)
You play your DVD through a regular DVD player with the analog plugs and/or S-Video into the converter box. The box is hooked up to the computer by firewire. You will lose a small amount of quality but the viewer won’t know the difference. How the video is handled in the computer depends on your software. If you have an Apple, it easily imports into iMovie. The box has the additional benefit of allowing you to record from TV, VHS, etc.
