ahh, I think I found a solution
http://www.videolan.org/
ok, after a bit of testing, I finally got it working, but you have to have network hardware that supports multicast
first, you (and all your friends) download VLC:
http://www.videolan.org/vlc/
then, the person with the DVD player, open VLC and go to File -> Open Disc
and select DVD (second option, next to DVD Menus)
then, at the bottom, select "Stream Output"...and click on the "Settings" to the right of that checkbox
A new menu will come up...
Click two checkboxes..."Play Locally"...and "UDP"
inside the UDP address box, put any IP Address between 224.0.0.0 - 239.255.255.255
these are known as multicast IP addresses, so for instance, for my test run to get a DVD stream over my network, I used 239.255.12.42 in that box
After you're finished with that, click OK and then you should be at the "Open" dialouge, then click OK again, and the DVD should begin playing...and streaming
Now for the clients...
Tell your friends to open thier VLC, and go to File -> Open Network Stream
Then Select UDP/RTP Multicast
and in the box, put the multicast IP address that you used earlier, and it should begin playing after a few seconds, depending on the speed of our network (which I suggest 100mbps+ for a DVD stream)
I actually tested this on my own network and got it working, so there you go
P.S. There might be some video disortion every once in a while, I think that would be expected with this kinda of streaming