From the first post, simply asking if DVD RW drives can rip DVDs onto the computer, the answer is......NO. DVDs thwart simple copy/paste actions used by your operating systems.
Can that be fixed? Yes. You need software. If k2000k wasn't talking about burning, then a program like anyDVD will enable you to copy the entire DVD contents, using only your OS functions, onto your harddrive for later viewing. You don't need a burner to rip to harddrive. Quite useful for 1 day rentals when you can't watch everything at once. However, AnyDVD is not freeware. You have to pay after 30 days or so. You might try something like DVDDecrypter for the same functions in a freeware application. I prefer AnyDVD since it works in the background.
PowerDVD can view the DVD files on the hard drive, without the need to "mount" an image, such as with daemon tools. I don't think daemon would work well with DVDShrink for this, since daemon mounts whole "images" and DVDShrink rips all the files individually. I don't remember if DVDShrink had an image function or not.
DVDShrink is useful if you want to make your own backup of your disc. However, if you have a DL DVD drive and AnyDVD, DVDShrink is not needed. Then burn to DVD with NERO (or Roxio). I think XP might also be able to burn to DVD, but I'm not 100% sure (it can do CDs).
Those are the programs that I use.