If you want to pull the video of a DVD, you'll need to rip it with something like Handbrake.
If it's not your DVD, then the legality of what you're doing is a separate issue.
The .vob files (in the Video_TS folder) are what you're looking for. You can drag them to the timeline straight from the DVD, but it's much, much better to transfer them to a hard drive first.
-Import-DVD Camera Disc!!!!!!!!
I just did a complete analog to digital conversion before I realized I could use this function.
I should have checked this forum yesterday.