How do i edit a home movie on a DVD?

I just paid to have some home movies converted from VHS to DVD.  I loaded the DVD into my computer, expecting iMovie or iDVD to be able to allow me to basically edit the movies.  I learned that that's impossible without first downloading MPEG Streamclip which I did.  Then I learned that I still can't proceed without also paying $20+ for MPEG-2 Playback Component.  Apple says that Playback Component is not required with Lion, which I have.  But elsewhere, I read that I do need it.  Worse, most of the reviews say that it doesn't work, that there is no audio.  I don't have $20 to throw away.  And I'm not sure that, even if I did install Playback Component, that I'd have video, because I don't have it now.  Am I missing something here?  Is it true that iMovie won't import a video from a DVD that I can watch on the same computer, but it will import a movie from a camera?  (I don't have a camera.)  So: why am I not getting video, let alone not getting  audio?  And what can I do to edit a movie that's on an unprotected DVD?  Thanks.

Hi aa,
dvd is end of the road, DVD uses a compressor (mpeg2) not meant for further processing..
Handbrake converts into mpeg4, another lossy compressor (not meant for editing...), which needs to be converted AGAIN for usage in iM...
I would do....
get for 20$ the Apple mpeg2 plugin
and for free the tool Streamclip for converting mp1/2/4, divx, avi, vob...
(with that combo you can NOT override copyprotection mechanisms! ... )
other tools are:
* DVDxDV, it has a 30d trial period (testdrive sets a watermark)... and cost 25$
* Cinematize >60$
* Mpeg2Works >25$ + Apple plug-in
http://danslagle.com/mac/iMovie/tips_tricks/6010.shtml
http://danslagle.com/mac/iMovie/tips_tricks/6018.shtml
or connect Your Camera to a DVD-player and copy to tape or import trough if Your Camera handles that..
DVDxDV is a very good "beginner's tool", one-click-only + try out...

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