that is a horribly stupid and contradictory thing to say. copying a dvd for your own use is not unauthorized use...just as personal vhs is not and was not. it's called fair use...and many mp3/video legal battles have been dismissed because of the owner's proof.
[edit: just realized i replied to an ancient post. Sorry]
Don't know if you're in the US or not (though other countries have similar laws anyway), but there's a poorly understood provision of the Digital Millenium Copyright Act (DMCA) that makes it illegal to circumvent the copy protection on copyrighted DVDs to extract the content, even if you own a copy of the DVD, the copy is for your own personal use, and you don't distribute the content or infringe the copyright in any other way. Ripping DVDs is treated completely differently under the law than CDs and MP3s are, because CDs, while copyrighted, don't have copy-protection encryption. Unfortunately, we the consumers don't get to broadly apply "fair use" to this situation.
I don't like it any more than you do, but it's probably good to be aware of what the actual legality is. As it is, I don't think that people who rip their own DVDs are likely to ever get "caught", as long as they don't share the files or draw attention to themselves in some other way.
I suspect the law will get changed in favor of the user pretty soon, but at the moment it is
not actually legal to extract the content (rip) copyrighted
and copy-protected DVDs, regardless of what you do with the resulting file.
Incidentally, the difference in legality is specifically why software like iTunes has provisions for ripping CDs, but not DVDs.