You can use the Get Media feature from DVD in PE7 to import the complete DVD (note this will take some time as it downloads the DVD's vob files to your computer). You will then need to cut out the various snippets you want and then add them to your project. Easiest way to do this is to double click on the VOB file in the project Media Bin. It will then open in the Preview Monitor... then you set In and Out points and then click on the preview monitor and drag the video to the project Media Bin. It will then ask you to name this subclip. NOTE... you can not delete the original VOB file as these subclips are really just reference pointers to the original DVD vobs you downloaded to your hard drive. However, at least you will have these snippets in an orderly fashion in the Media Bin that you can use within your project.
In PE, you can Import many .VOB's (the larger files from the DVD, that contains your media, Audio & Video). This works well in most cases. The one problem is that .VOB's can contain a lot of different things (Menus, and navigational info, etc.) besides just the Audio & Video. It is this other material, that can cause issues. If you have issues with the files that you Import directly from the DVD, you will need to rip the DVD. This is a term that means you are extracting all of the data and basically throwing away everything that is not Audio & Video. Note: with some .VOB's it is often possible to just copy the .VOB files to the computer and then change the file extension from .VOB to .MPEG. Sometimes, this works perfectly, though sometimes that extra info inside the .VOB causes problems. If you encounter problems (often lost Audio, or lost Video, or Out Of Sync issues), then this LINK has some suggestions for mostly freeware and steps on how to rip from the DVD's. As you see, it can be as easy as just Importing from the DVD, or a bit more involved. One note: I'd copy over the contents of the DVD's to the computer's HDD, and then Import from there. The reason for this is that with an Import, PE is not making a copy of your media. It is only establishing links to that media. If you just Import from a DVD, PE will need that DVD in the drive to access the VOB and if you have Imported from more than one DVD you'll be swapping and confusing PE.
Also, the DVD will contain up to 4.35GB of data. As you can see, the files from a couple of DVD's can fill a hard drive quickly. If you have more than one, you might wish to consider an external drive, and copy the contents of the DVD's to it. Be careful as each DVD will have the exact folder structure, VIDEO_TS with the VOB's and a few other files inside that. I'd set up the folder structure as DVD_01 and then copy the VIDEO_TS and its contents to that. Next, DVD_02 and repeat.
Once you have the media files from the DVD(s) into PE, you can cut to your heart's content. When done, just Export your Project as a DV-AVI, and use that in PSE. Once done there, Export the entire Project as .WMV, (if you have the suite of PE & PSE, corresponding version numbers) you could also Export from PSE directly to PE and finish your editing.
It sounds more complicated, than it is. I also pointed out a few "what ifs," that may never come into play.
PS before the forum changeover, the PE FAQ's had some good tips on ripping from DVD. It appears that those have not been restored yet. Still, there are many articles in this forum on ripping from DVD's. Also, the fora ("Community") on Muvipix has a lot of good articles on what software and techniques people have used to do the ripping.
Thanks for pointing out that Get Media DOES copy the VOB's to the computer. I though that it only linked to the files, causing the potential problem that I warned of in my reply.
Glad you got your post up before I got mine up. I appreciate your correct info, and so will the OP.