Seems to me this would be simple to produce with freeware like DVDAuthor Gui. Create your story boards (720x480 .bmp for NTSC) in any graphic program. Have DVDA GUI make 'stills', say 30fps x 5 seconds = 150 frames each. Then load up your board 1, clip 1, board 2, clip 2,etc. Have them link from board to clip to board to clip...last clip links back to board 1. Then save.
If you want to make short clips from DVDs I would use Mpeg Video Wizard DVD. It will let you import and cut VOBs and make transition between them so it will look like a preview from commercial DVD.
