Here is what I get.
$ xine dvd:/
This is xine (X11 gui) - a free video player v0.99.3.
(c) 2000-2004 The xine Team.
libdvdread: Using libdvdcss version 1.2.9 for DVD access
libdvdread: Attempting to retrieve all CSS keys
libdvdread: This can take a _long_ time, please be patient
libdvdread: Get key for /VIDEO_TS/VIDEO_TS.VOB at 0x0000013f
libdvdread: Elapsed time 1
libdvdread: Get key for /VIDEO_TS/VTS_01_0.VOB at 0x0000025b
libdvdread: Elapsed time 0
libdvdread: Get key for /VIDEO_TS/VTS_01_1.VOB at 0x00000361
libdvdread: Elapsed time 0
libdvdread: Get key for /VIDEO_TS/VTS_02_0.VOB at 0x000003a5
libdvdread: Elapsed time 0
libdvdread: Get key for /VIDEO_TS/VTS_02_1.VOB at 0x0001652c
libdvdread: Elapsed time 0
libdvdread: Get key for /VIDEO_TS/VTS_03_1.VOB at 0x002fb352
libdvdread: Elapsed time 0
libdvdread: Get key for /VIDEO_TS/VTS_04_1.VOB at 0x002fce3c
libdvdread: Elapsed time 0
libdvdread: Get key for /VIDEO_TS/VTS_05_1.VOB at 0x00396f8b
libdvdread: Elapsed time 0
libdvdread: Get key for /VIDEO_TS/VTS_06_1.VOB at 0x003b70dd
libdvdread: Elapsed time 1
libdvdread: Found 6 VTS's
libdvdread: Elapsed time 2
See the difference?
Mine is finding the dvd filesystem whereas yours is searching for it but not finding it. Let's have a look at your /etc/fstab entry for the dvd drive. As for the

faces that's because what your pasting has a colon then a capital D, so it replaces them.