The word out is that it is possible that Apple will offer movies that can be downloaded and burned onto a DVD. This could be part of a reason for the delay in the iTunes movie store debut. The DVD Copy Control Association is the one hurdle that Apple has faced in their pursuit of the copying of movies to disc. The DVD Copy Control Association has the Content Scrambling System(CSS) which is placed on DVDs to prevent illegal copying. There is also a rumor that blank DVDs might be made with the CSS system in place.
It sounds like you’ll need this special kind of blank disc for this to happen. But it also is pretty clear that this is not near the end and there will be some more discussion on the legal side of such a task as this. Appleinsider.com has the story on their homepage.