Mark,
There’s a couple of routes you can go:
1) Purchase an ADVC converter and ingest your DVD into FCP. This takes the signal from your DVD player and converts into Firewire so you can ingest into FCP.
You can see them here:
https://www.bhphotovideo.com/c/product/349146-REG/Grass_Valley_602029_ADVC_110_Bidirectional_Media_Converter.html
2) Purchase/download a DVD ripping software (i.e. DVDxDV, Handbrake, etc.). This allows you to extract the mpeg-2 and convert it into a format you can use inside of FCP (or any transcoding software).
As far as preferred internet video delivery format, I recommend Flash. It is universal as far as web browser and computer platform. Windows Media rarely works reliably on anything outside of Internet Explorer on a Windows machine (and that can even be sketchy sometimes). For 1800 videos that we offer online Flash is our choice. Quicktime is good, but not necessarily as universal as Flash. For the time being, I recommend Flash.
To convert to Flash you can use Compressor (after buying the appropriate plugin) or you can purchase a dedicated software solution like Episode by Telestream or Sorenson Squeeze to handle the transcoding.
Ryan