Yes - PS11 is a very powerful editor that I have been using for about 4 years now, beginning with version 9. You will capture your video from the DVD into PS and it will be a single long track. Using the SPLIT CLIP tool you will be able to cut it into as many smaller pieces as you like. These smaller clips can then be deleted, rearranged, and/or segued together with or without transitions.
Although not a professional videographer, I have taped weddings for friends and then edited them with PS. My friends are always pleased at how professionally I can create a video with my single Canon DV camera and PS.