Pete Blair
I would prefer that you start from the original DVD-VIDEO and DVD disc (Add Media/DVD camera and computer drive/Video Importer/. But you could try importing the VTS_01_1.VOB saved to your computer hard drive into the project with the corresponding project preset. You would use Add Media/Files and Folders/Project Assets from where you would drag the file to the Timeline. Either way, if you get an orange line over the Timeline content, that would suggest that we do not have the correct project preset.
More fine tuning of the details after that point.
ATR