Yup! My only word of warning is that there has been a video iPod (a true one) rumoured for a long time, and with the coming of the zune now, I have a feeling Apple won't wait too long to release it. Essentially it's meant to just have a touch-screen on the front, to control everything. It's almost certainly feasible, and they've applied for a few patents covering this exact thing. Just a word of warning!
Yes, you can put your DVDs on iPod, but iPod accepts only MP4 format video, DVD is MPEG-2 format, so you need to convert your DVD to MP4 format, then you can add them to iTunes and sync to iPod. I recommend 'Wondershare iPod Video Suite' to you, it can rip and convert DVD/Video to iPod, I always use it to enjoy my DVDs on iPod, very easy to use, this software provides 24*7 hours online technical support, really help, you may download for a trial. http://www.dvd-ripper-copy.com/download/ipodsu ite-download.php?sid=2
Here is a step by step guide about this software http://videoguys.forumexperts.com/viewtopic.ph p?t=111814
I hope it helps.