HandBrake is a GPL'd multi-platform, multithreaded DVD to MPEG-4 ripper/converter - it's super easy to rip the DVDs you have and put them on the new iPhone - they look great and are about 1 GB each, here's how...
First, get HandBrake - Link. There are also PC versions of HandBrake, it might work about the same way.
Install it, run it. Pop the DVD in. Pick the DVD volume. Choose your settings, I use the defaults usually.
It takes about 30 min or so, it runs fine in the background.
In a couple minutes it transfers over.
The video is in the videos section. iPod / Videos.
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