In the source code, there is src/Disk_Drive/disk_copy.c which looks to be a plain vanilla 64 bit disk copy program. Basically on any read error, the disk_copy intentionally fails.
What it looks like we need to do is to modify disk_copy.c to ignore bad sector errors. This will probably mean reading just one sector (2048 bytes) at a time, checking the errno if the read returns 0, and checking that position is not EOF. It's going to be much slower. It might be possible to regain some performance by threading the loop.
FYI, here's a description of Sony's ARccOS http://en.wikipedia.org/wiki/ARccOS
. Also a little more info is available on the gentoo wiki: http://gentoo-wiki.com/HOWTO_Backup_a_DVD
On my gentoo workstation, I tried the dd and vlc work-arounds, but without any success. The ddrescue did work in ripping the dvd to hard disk:
ddrescue -n -b 2048 /dev/sr0 rush3.iso rush3.log
Press Ctrl-C to interrupt
Initial status (read from logfile)
rescued: 0 B, errsize: 0 B, errors: 0
rescued: 6685 MB, errsize: 188 MB, current rate: 0 B/s
ipos: 133300 kB, errors: 2, average rate: 2918 kB/s
opos: 133300 kB