You sent me a note asking about MagicDVDRipper. If I were you I would not invest anything in that program. If you want an all-in-one decryption/ripping/conversion program buy DVDFab Platinum.
The other good choice for dvd decryption is AnyDVD. The HD version of AnyDVD is the only effective program for decrypting Blu Ray movies, if that is a concern for you now or in the future. It has free lifetime upgrades also. I use AnyDVD in combination with several other programs, like DVDDecrypter, DVDShrink and DVDRebuilder Pro.
As far as playback on the computer, yes, you can playback movies that are stored on the hard drive. As you’ve found out, VLC is one option for this. PowerDVD and WinDVD are two others and another free choice is Media Player Classic.
Post back here in this thread if you have more questions.