Yes, it is true, Microsoft will allow users to copy their DVD Movies using Windows Vista. Not only will they allow you to copy them, but they will provide you with the software to do so. Not in the traditional sense, though, because the software will only copy the movie to your hard drive and not to another DVD. This decision came because of the increasing size of hard drives and the need to store DVDs so that you don’t have to carry them around. Looks like Microsoft will really be up-scaling the Media Center since Vista will also support HD and cable TV.
News Source: The Unofficial Microsoft Weblog