GRADGRIND  This software did not work, creating an iPod compatible movie from a (mac-the-ripper) Video_TS folder of a DVD (one I own incidentally). I tried technical support, who simply replied:

DVD manufacturers encrypt the data that provides us with the high quality presentations of films and other programs. The reason for this is to prevent unauthorized duplication of the DVD. Encrypted DVDs can not be legally copied and can not be copied at all using Roxio software.

So, I dug out my old 'angle-poise' iMac G4 and copied Popcorn 2 across. This now works.

If you can get hold of Popcorn 2, do it. This upgrade is pointless, and support is useless.  
(Version 3.0)