OK, I have some experience in this. Basically it's a gray area, as long as
you are the only one who uses the files you ripped, you should be OK. As long as you own the DVDs, you should be OK. I actually asked this question on Yahoo! Answers a few months ago, here is the link:
http://tinyurl.com/yalp4yz.
There is several freeware programs out there that will
decrypt a DVD. Basically it takes the
Video_TS folder and copies it onto your computer. Then you will need a program to
encode the Video_TS folder to iPod format. The best program to do that is Handbrake. (
http://handbrake.fr/) It
IS a legal program.
Hope that helps.