You'll need AnyDVD HD to break encryption on blu ray disks. If you buy it by the 11th (tomorrow in my part of the world) you'll get free updates for the life of the program. Anyone buying it on the 12th or later will have to pay periodic fees for updates.
There is no other effective decryption program for Blu Ray at the moment.
Once you have it on the hard drive, you can burn directly to a 25gb or 50gb blu ray disk using a free program called ImgBurn. Use the UDF 2.5 setting. www.imgburn.com
If you want to compress the main movie to fit onto a 25gb blu ray blank disk, or a dvd (either single or dual layer), you can use a free program called BD-Rebuilder. http://www.videohelp.com/tools/BD_Rebuilder This program is still in beta, but development is progressing rapidly.