Sorry not to have replied to you before, Roy.
As you said, adeleander's first remarks were "..Im currently ripping some old home movies I have on DVD to the mac to edit with iMovie. Im using handbrake to rip the DVD's, and can either do h264 or mpeg4.." ..so I gave an opinion about the choice between H.264 and MPEG-4, as one of those seemed to be what he'd - let's call adeleander 'him' - intended to use.
Your suggestion of using the video-out connection of his DVD player (..he didn't mention it, but he probably has one..) via a camcorder and into iMovie is nice and simple. It does a similar kind of conversion (..of the MPEG-2 on the DVDs into DV..) using
hardware instead of software re-encoding, so it gives good quality, and it works in 'real time' ..and it's also free - if he's already got the equipment, such as a camcorder or converter.
adeleander also said, in the original question, "..Now I cant notice much diffrence myself between the 2 files.." so I gave an opinion on the two codecs.
I didn't mean to "hi-jack" the thread, or repudiate your answer. I was just replying to the specific question about "..either do h264 or mpeg4.."
Connecting directly to a camcorder to import (..via video-in and then out through FireWire..) is an excellent way to do it. If I've something on a home-burned DVD which I want to post on the web I often feed the output of the DVD player into an Archos pocket video recorder ..one of these:

or
..they record in, erm, DivX or MPEG-4, and give a very sharp, high-quality, low filesize format which is exceptionally sharp, and which can be copied in real-time from the original DVD.
Here's an example of a home-made DVD (..you can see the 'Play' button onscreen, and after I've chosen 'Play' from the DVD's intro menu, the movie/slideshow starts properly..) which I played out through the DVD player's video-out, into an Archos recorder, and then posted the resultant video - in a small playback window - on the web.
So I'm all in favour of using the simplest method which gives good results!
It was simply that HandBrake offers only
either MPEG-4
OR H.264 as output options..
..and it doesn't offer DV (..although MPEG Streamclip
does offer DV as an output..) so I just gave an opinion about the relative merits of those two codecs.
Your method, through the video-out connection, does also involve some transcoding - it takes the original digital MPEG-2 compressed
file, builds separate video
frames from it, sends all that out as
analogue 'composite' video (in which all the different video colour and timing signals are merged together) ..and then the composite video has to be separated again in the camcorder/converter input, and be transcoded into digital signals again to go out down the FireWire cable into iMovie.
The HandBrake or Streamclip method keeps everything in the digital realm, and just changes the constituents of the digital files.
But I don't think there's a hard-and-fast rule about which is the better way to do it ..one method or the other may give video which looks subjectively 'better' than the other, depending on, say, the quality of the DVD player's signal processing, the length and quality of video cable, the 'contrasty-ness' of the original material and how much movement there is in it, etc.
Others, Matti for instance, may have other - and better! - opinions.