My First DVD - Which program to use?

Hi, folks.
I have never used Apple's video editing softwares because I didn't have a Mac with Superdrive. Since I have one now, I'd like to have some fun with it. So, I decided to start playing with my wedding DVD.
The company which shot my party was very good on shootage but horrible on editing. The movie doesn't have chapters, subtitles, credits or even a good menu. So, I'd like to re-edit it adding nice pictures, menus, etc., etc..
My first question is:
Which software to use? iDVD or iMovie? I took a look at iDVD and it has terrific templates I'd love to see on my DVD, but, is iMovie any better?
Second:
How can I extract the movie from my source DVD? I checked it and found the following files inside:
VIDEO_TS.BUP - 12k
VIDEO_TS.IFO - 12k
VIDEO_TS.VOB - 34k
VTS010.BUP - 56k
VTS010.IFO - 56k
VTS011.VOB - 1GB
VTS012.VOB - 1GB
VTS013.VOB - 443MB
And I have no idea what to do with them.
Do I have to use any software to extract the video from the DVD or just copying those files to HD is enough?
I would really appreciate any kind of help.
Cheers.
JP

Just one thing: keep in mind that it is standard practice that wedding photographers and videographers retain the copyright to the video and photos they shoot. They will generally offer to provide you with copyrights to the video and photos for a fee -- if you didn't enter into such a negotiation before, you should contact the original photographer/videographer to obtain those rights and avoid possible legal problems later. It's also common practice that, if you purchase those rights, you will receive the original tapes and photo negatives / digital images as part of the deal.
That said, if you want to re-edit the content from the DVD, you need a tool like Handbrake to convert if from MPEG-2 format (the DVD) to DV (digital video) for editing in iMovie. iDVD is for rencoding the edited DV content back into MPEG-2 for DVD and preparing DVD menus.
The most recent version of iMovie (iMovie 8) left out support for DVD chapters, so if you want to use them, you need to use iMovie HD (6).
One important point is that the MPEG-2 to DV conversion is pretty much lossless (the video quality is the same coming out as going in). However, in re-encoding back to MPEG2 in iDVD, the quality will noticably degrade. This is unfortunate, because the video on the DVD is already substantially degraded from the source material (on DV tapes). Like I had mentioned before, if you've gotten rights to the video, you probably have access to the original tapes -- in which case you want to borrow a DV camcorder to transfer the video from the original tapes and work with the first-generation DV rather than the content on the DVD.

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