Those folders are what make up the structure of a DVD (VTS/VOB etc). You should be able to select a VOB and have it play straight away, but that's only part of the movie. Try clicking the VTS files and see if the movie plays from the beginning. Basically everything was done correctly.
Note that it's still a try-and-see what happens kinda thing, in terms of getting a DVD, which was ripped to the Xbox's HD, to play. Sometimes it works, sometimes it doesn't.
Also, under perfect conditions (DVD has no scratches or errors of any sort), DVD2Xbox can copy a full DVD-movie ok, to HD. If there are errors or scratches to the DVD, many faults can occur, during the ripping process.
If possible try using DVD Decrypter to copy the DVD to you PC's HD, then FTP the files to the Xbox.