Got many bluray discs lying around ? afraid of scratches and damage?
What you need:
1)PS3 we will only use this only for bluray drive. (Blu ray drives are very expensive , while ps3 came affordable with one!)
2) Linux on your ps3, YDL or Ubuntu , either will do. (see transferring files to pc section)
2)Decent pc with Core 2 duo or Quad with min 2GB RAM , and atleast 160 GB hd space.
3) Networking between the pc and ps3 ( essential , simple cross over cable will do.)
4) Patience.
Things you will do with ps3:
Boot into Linux .
If you havent installed linux , here are simple steps how to do it. Don worry , it wont screwup your ps3 , Completely safe. IT IS officially allowed by sony.
Install guide for YDL here and ubuntu here.
Boot into linux
Open Terminal
When you open terminal , you will have access only as user logged in. Please use sudo , or su.
Type this without quotes. (dd is a command which copies bytes to bytes )
dd if=/dev/cdrom of=/darkknight.img
It will take quite some time , in my case it was around 40GB. 
When it ends
2886180+0 records in
28806180+0 records out. , something similar.
Now the disc is copied to an block to block image on ur ps3 HD
Transferring the image to your pc:
Now the hard part. The image is around 40GB .
You might have external HD . but if it is formatted with NTFS , default YDL wont have write support for ntfs , as kernel doesnt have FUSE built in.
But if you have PS ubuntu , then it has built in NTFS write support , but i still had some idiopathic problems with writing to my 1TB external drive.
But if you have networked pc and ps3 , then things are gonna be good.
To know how to network PC and ps3 with simple crossover cable , click here.
Copy the file to your pc.
things you will do in you pc (Windoze only)
Now you need programs .
Anydvd HD (commercial )
Virtual Clonedrive (free)
OR
DVD43
If u have some spare bucks and want to do it the easy way, then go for Anydvd HD.
Or if you like adventures , then go with dvd43.
Install Anydvd HD , reboot the pc . now install virtual clonedrive.
Open the iso file with anydvd HD , and with virtual clonedrive.
Anydvd will rip out the protection in the Bluray image, So that we can rip it.
Also you can check that your image is perfect by opening the virtual BD ROM with Powerdvd or some player and seeking thro.
Now fireup AnyDVD ripper (start menu -> Slysoft -> anydvd ripper)
choose the drive and choose the destination folder and click copy dvd.
the files will be copied.
Now you can either use RipBot264 or Handbrake (both are free)
I recommend Ripbot on windows and handbrake on Os X.
With Ripbot264:
Fireup ripbot264
click add and browse to the folder where you copied the .MTS files , then choose the first one.
It will analyse the file and then choose the profile (mkv)
Then click start.
it will take some time. Go and grab some coffee and watch a movie in tube.
In my quad core it took around 3.5 hours to rip Batman Dark Knight (best movee eva!)
Now open the movie with MPC or powerdvd.
Enjoy.!
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