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Corbin is right, Macrovision provided the standard CSS software encryption standards which all DVD players and pre-recorded media must adhear to.
What it basically does is scramble the image being output when the software believes that you are attempting to make an illigitimate copy of the source material.
Now, this can also cause problems in some legitimate situations such as with some projectors and when devices are connected in complicated methods etc, so, people have hacked players firmware to circumvent these issues.
In my opinion, the only real reason to have macrovision disabled is if you are using a projector and expect that you may encounter issues with playback.
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