DAN BUCHAN Instead of *moving* the VIDEO_TS folder out of the ripped DVD package file, just make an alias of it at the same level of the ripped image.
For example, after I rip a DVD I create a folder with the title of the movie/show/etc. and place the ripped DVD image inside it. Then I control-click (or right-click) on the DVD image file, show package contents, then make an alias of the VIDEO_TS folder at the root level of the folder that contains the DVD image. Then you can drop that onto VLC and it will act just like you have the physical DVD in the drive.
(Version 1.1.5)