Hi Sanguine,
Either way, copying any DVD that you do not own the copyright authority in, is illegal! However, the penalty depends very much on what is being done with the copied product.
If the copies are being sold on e-Bay, car boot stalls, the local pub, then you'll be treated like a genuine criminal pirate. If by some chance you were caught by the police or Trading Standards, copying "The Lord Of The Rings - Part 1" for your next door neighbour, who was only going to watch the copy once, before destroying it, you'd probably get a small fine and/or a slap on the wrist.
Copyright violations are taken extremely seriously now, as I'm sure you will know. There have been several legal cases in the US, the Far East, and the UK, where pirates have been put in prison, or given substantial fines of several thousand, because of their activities!
Hope that answers your question a bit better.

Oh, and I've reported the e-Bay moron, mentioned in the first post of this thread, so I hope the sale gets removed, and the e-Bayer concerned, gets a ban of some kind!
Pooch