I am told handbrake is a good application for converting DVDs to other formats for your PC. I haven't tested all the media players for droid so I don't know what formats are supported. This app might be worth a shot though.
I'll second dvd catalyst! I tried many options before going with it. The free version dvd catalyst free, is very simple and easy to use. I purchased the full version to have more control and more format options all in one piece but for just viewing them on the droid grab the free version and try it out.
assuming you have copied the movie in a format your droid can play, just plug your droid into ur computer via usb. At this point under windows it should show up in my computer under another drive name. Now navigate to where you want to store videos on your sdcard and drag the file over. Then to play it, it should show up in your gallery app. Just click play on it.
Google search for "DVD to Droid". It is free and works like a charm. If you run it while your MotoDroid is hooked via usb it will automatically move the mp4 file to your gallery.