I work a full-time job probably meant to support a family. Without a family and without a girlfriend, IT'S MINE! ALL MINE! BWAAHAHAHAHAHAHAHAHAHAHA!!!!!!
I wondered if I could simply do it using a version of VirtualDub that I downloaded last night modified to read DVDs/VOBs, but some brief experimentation made me realize that I couldn't save it as a DIVX AVI file and also have iTunes open the file. That and it doesn't recognize the audio codec so I'm doing a direct copy, there...
However, if you can get a file into something that iTunes can open, I think you should be able to convert it into an iPod/iPhones file. I'm not seeing that option right now for files I did convert in the past, but I think that might have something to do with the iTunes settings (unless they explicitly removed that feature.)
That's all a bit convoluted and complex, though, so it probably won't help you watch new stuff on the go, but if you were hoping to show your friend something...