"Direct ripping" is putting the game disc into your computer and ripping the footage from it without using the ps2 at all. I have been working on trying to find the FMV sequences on my FFX dvd, but so far have had little luck. The biggest problem with doing this, though, is that many of the sequences are rendered realtime, with only a few played back from a pre-rendered video.
(there are no spoilers in the following. i promise.)
(for instance, with FFX, the opening sequence ("listen to my story", etc) is rendered realtime, as was the scene where Tidus looks up at the sign with Jecht on it, while the opening blitzball match from the Jecht Memorial Tournament was pre-rendered.)