Front Row will also pick up VIDEO_TS folders placed in your Movies folder (or you can just put an alias in the Movies folder). Any DVD ripping software will remove the DRM from the files. I'd recommend RipIt or MakeMKV (which is free while in beta).
If you're thinking about upgrading to Lion, though, be aware that Front Row will no longer be available.
It's a 2011 Mac Mini with Lion but I've already re-installed FrontRow and it works a treat in tandem with EyeTV for live telly. I had to downgrade to iTunes 10.3.x as FrontRow cannot read the iTunes 10.4 or greater library files. I played with Plex but integration with EyeTV is just too cumbersome for me. It's my guess that Apple are working on and will release a Media Centre app for Lion - they'd be crazy not to.
I specifically want to use VIDEO_TS as I want the full DVD menus where possible and to save the conversion time and effort.
I've used Handbrake and whilst it works well converting to iTunes formats, I have the whole of
The West Wing and
Morse to rip before handing the DVDs back to my ex-partner and neither the time nor the patience
to convert via Handbrake.