You dont need Handbreak, Digital Copies are completely different.
I assume its a US version of Hancock as I dont think UK films are doing digital copies yet (although I may be wrong).
If it is a US version then you need a US iTunes account otherwise it wont work. Stick the Digital Copy DVD in your computer, enter the code on the leaflet when prompted and it will download to your itunes - then sync with your iPhone.
There should be a sheet with instructions (and activation code) in the Blu Ray case