You can do this with the My Movies 2 for Windows Media Center. Unfortunately, Windows Media Center is only included in Microsoft Media Center 2005 (a version of XP) and Vista Ultimate and Vista Home Premium.
You can also just enable the DVD Library in Vista Media Center: http://support.microsoft.com/kb/930526
There is also a program called DVDPlay, which is a helper program for VLC media player. [B]Here is a link to the download[/B] You don’t have to use their program called DVDRip to work with DVDPlay. You can decrypt and rip to the hard drive using whatever tool you want, like RipIt4Me, DVDFab HD Decrypter, AnyDVD, etc.
DVDPlay and VLC will work in XP.