So can I put the DVD into my pc and copy it to iTunes so that I can then copy it to my iPod? Does it work that way or do I need to buy the movie twice??
No, the only thing is that iPods don't read the DVD format. So the only thing you need to do is convert the file from DVD to MPEG4 using a software like Any Video Converter.
I just asked my brother and he says he uses DVD Fab.
Get Any Video Converter for free a download.com