LinuxMCE does not really rip a dvd, but copies it...
The major difference is, that the .dvd-Files are an image of the complete dvd, including the menu and all the movie-clips on the dvd. That way you do not only get 1 movie-file, but all the extras, all the subtitles, audio-tracks, ...
What you could do, is rip the dvd with compression, etc on another pc and copy it to the core. or take the .dvd-images, mount them loop-back (mount -o loop movie.dvd /mnt) and rip the movies from there...
If you are looking for a tool under linux to rip/convert movies from a dvd have a look at
http://www.mplayerhq.hu/DOCS/HTML/en/menc-feat-vcd-dvd.html...