First of all a BIG thank you for posting this manual. I followed your instructions step by step and it worked out of the box. DVD display with mplayer-vaapi was also fine.
What IMHO is missing in the README of the mplayer-vaapi package is a
sudo apt-get install libva-dev
but this was easy to find out.
In my case the sound driver did not need to be explicitly specified (better: must not in order to hear any sound):
mplayer -cache 8192 -alang en -slang en -vo vaapi \
-dvd-device /u90/vobdata/Flyboys/ dvd://1
The only thing I am still missing is video output with Skype. The camera works (at least my colleagues tell me so

Cheers and thanks again
Martin