Rip the DVD using DVD Shrink in reauthor mode, selecting only the title you want. You can even set rough in and out points. Be sure and go into preferences and disable "split VOB into 1 GB chunks". You want the small chunks for proper DVD burning, but you need a contiguous file for editing.
Next use your encoding app of choice to convert the VOB to a DV avi file. I recommend Procoder, but there are cheaper alternatives out there. DVD2AVI and tmpeg should work.