Anyhow - iMovie under Leopard doesn't import VOBs (even from non-encrypted DVDs) but it will import media from some of the JVC HD-type camcorders. When you connect them over USB they look like external drives with a DVD file-structure. So - here are my instructions for getting iMovie to import DVD-camcorder footage without resorting to transcoding to another codec;
1) Insert DVD.
2) Open Disk Utility.
3) Select the disk and then select "New Image". Save the disk image wherever is convenient, such as the desktop.
4) Once the disk image is written, open iMovie 08.
5) Mount the new disk image. A "Camera Detected, Scanning Contents" window will appear in iMovie 08, followed by an import window. You can now import the DVD contents and start editing away.