A few comments:
1) Xine doesn't ship with DVD decrypt code by default because, in the absence of a contract with the DVD content control authority, it required breaking the encryption on the disks. That's fine outside the US, but not inside. Other players, like Ogle and mplayer, are developed in Europe, and don't have any problems with that.
2) Some distros cannot detect the case when your CDROM drive doubles up as your DVD drive. This problem is known, and some players like Totem allow you to select the drive you wish to use from a pretty GUI dropdown.
3) You may need to enable DMA manually. Google for this - Red Hat in particular requires a bit of extra legwork. That's caused by the fact that DMA can be dangerous if enabled on drives that don't support it, and short of building enormous lists, there's no way to know if it supports it.
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