Seems like there's two answers to that question:
(1) Some prefer an all-in-one solution, which "rips" the video off the DVD and then does the conversion to h.264 (one of the formats the Nook plays). Go ahead and scan through this thread to see a few examples. I think most of these run $10-$30.
(2) There are also several programs that rip the video for free. My personal favorite is DVDShrink (Download DVD Shrink 3.2.0.15 Free - With this application you can backup DVD disks - Softpedia) which is very easy to use. A 2-hour movie should take about 10 minutes to transfer to your computer (I suppose this is the place where I'm supposed to remind you that it's illegal to copy rented movies...). Note that it creates a set of folders with your movie. Inside the Video_TS folder you'll find a file named something like VTS_01_1.vob which is your ripped movie. Just feed that into Handbrake and you're all set! Depending on the speed of your computer, and the settings you use, you should have a fully converted movie in 2-4 hours.
If you decide to use DVDShrink let me know and I'll share a few tips.
-Matt
So Handbrake does not rip the DVDs? I just downloaded DVDShrink. I am going to give it a shot.
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