Okay, I went and did a test.
The file below is the result of:
3 test cards --> PAL DVD compliant MPEG2 file on a usb flash drive --> Philips DVD Player with USB port --> RCA Composite out --> DV Camcorder In --> Firewire port --> Dv Capture with Virtual Dub --> Interlaced Mp4 (thanks Ripbot264!)
https://docs.google.com/file/d/0B3Wlp4clLq4dUHJpVTI4VEN6Wms
I gotta admit, this DVD Player has quite the crappy composite. I think the audio buzzes too, along with the video.
JEDIT
Sorry again for hijacking the thread, but apparently this DVD Player is utter crap.
https://docs.google.com/file/d/0B3Wlp4clLq4dUFFtcHhFRUtjcDA