If you really want to go the uncompressed route then you could rip the dvd with DVD decrypter, then use DVD Shrink and re-author and just select the 'Main Movie' and put it back out as a 'Hard Disk Folder' at no compression. (This will leave you with just the movie itself to worry about, no menus extras and what have you).
Untick the option to break it into 1GB files and you will end up with a single .VOB file of the enitre film.
(You may be able to use just DVD Shrink and bypass DVD Decrypter if you want)

Then You could load it into virtualdubmod as a single file and output it to huffyuv or a similar lossless codec.

You could then load it directly into any program that can edit .avi files , premiere included.
Save your edits back out using a lossless codec, and then you could re-encode the whole thing using CCE to get it on a dual layer disc.

ALl of the above is only if you want to go that way, you could use .d2v files as Karyudo mentioned, or use an Avid and edit the files directly.

Either way, the answer is yep you can do it on your PC with Premiere and a few free programs.

Head on over to doom9.org, it will literally have *all* your answers and more.