I second, third, fourth, or whatever the idea of just buying a USB powered external HD and rip your DVDs to VIDEO_TS folders and playing them off of that. I play VIDEO_TS folders all the time through VLC, just go to 'open disk' and navigate to the folder. In the end you'll end up using a lot less power than you would with an external DVD drive. Also, if the program you use to rip the DVD takes all the protection off, DVDFab does and is my fave, then the requirements to play back the VIDEO_TS folder are a lot lower, I'm sure all the libs are in the repoes.
Then again if you rip the the DVD to a VIDEO_TS folder you might as use Handbrake to encode the movie, will take up a lot less space that way. The funny thing is if the DVD is interlaced, which most DVDs are, then if you use decomb when you encode it actually looks better than playing the DVD. Heck, you could rip a blu-ray and encode it smaller than a VIDEO_TS folder.
EDIT: I'd do this all the ripping on a desktop rather than the Pandora. Also, the newer Handbrake is really easy to use, a little too easy I though until I encoded some DVDs, its fast and looks good so that's all I care about. Also, I'd use the GUI and not worry about the command line on Handbrake, it doesn't seem to be any faster when I use the command line.