FOLLOWUP – I got home from work and gave it a try. I guess that .dvdmedia is just a packaged version of the VIDEO_TS folder. As soon as you select it in WiiMC it navigates down to the VIDEO_TS folder, where you can then go further down and start the dvd. I did notice that when the dvd is particularly large (the dvd that i ripped was a dual layer disc that was in excess of 7 GB) that WiiMC has a hard time playing it back. I think I may need to compress the videos after all to get them to play seamlessly on WiiMC. Hope this helps others as well.
