The way I tend to rip DVDs on my Mac is as follows:
1. Use 'Mac-the-ripper' which decrypts the DVD and basically copies the DVD as is across to the hard drive with all features as on the disk. File size etc all remains the same. 2. I then use Handbrake to convert it to mv4 or mp4 format which are all playable on ATV. The advantage is this then also gets rid of all the intro stuff including menus, copyright warnings, ads etc so you just get your movie. You can also set subtitles etc if you wish but it will encode this directly to the resulting video which cannot then be subsequently changed unless you re-encode and replace the final output file. It also compresses from the DVD size of around 4.3GB down to around 1.4GB . Quality still quite ok and even on my projector with ATV, is more than watchable. 3. Now I copy the resulting file to my server and drop it into iTunes, change the cover-art in iTunes to a scan of the DVD cover. This iTunes remains on and my ATVs around the house stream it from the server. The movie is visible by cover-art. Sensational!
Now, converting (compressing) from DVD to mp4/ mv4 is a time consuming process but the nice thing about Handbrake is that you can queue up jobs so it can grunt away overnight encoding your videos.