It's been a while for me lol, but I think I recall a few things lol. Firstly you need to have a DVD-ROM drive, then you need ripping software (like dvd decryptor, smartripper, etc...), then you will have to decide what you want to encode it into (VCD, DivX/XviD*which are avi's compressed, etc...) and get appropiate software for that conversion/encoding.
I could explain to you step by step, but as I understand it, Chickenman has a nice tutorial section setup already (easy to follow) here:
http://www.cdrbase.com/forumdisplay.php?forumid=120
Some updating can be done (I read CM will be doing that shortly) but for the most part everything you need to do is there (with minor changes on latest software versions you can often figure out).
I'm taking a shot in the dark here (I am the dark one after all lol), but you seem to be into anime and probs want to encode those, so you will also want subtitles, I would then recommend using virtualdub for encodings (also gordian knot and few others).
Good luck. ^_^x
PS
Hello old friends. Just thought I'd drop by and say hi!