saw Sean Alexander's post about Discussing DVD Streaming with Media Center. reading the source, its pretty clear MCE is highly unlikely to get DVD streaming. sadly, its just another reason i stopped using MCE.
instead, my Popcorn Hour and Klegg MediaShare devices stream DVDs from NAS devices with full menu support. just had some harddrives free up, so i put together a NAS for DVD rips. hacked up a quick app last weekend to batch rip my DVDs, using a Sony (MCE) DVD Changer, its been running 24/7. guesstimating that it'll finish this weekend. when it does, i'll test the results and put the code out.