Until I bought my DVD player, this is how we ran movies at our home. Hooked up the iBook to the front AV jacks on our 27" TV and watched movies. I did this because I didn't want my kids rifling through my growing DVD collection like they do with my old VHS stuff.
i do the same as iLabmAn did. i just plug my apple AV jack into my vcr, hit input and voila! i watch dvds and since i don't have a new stereo, i listen to music thru my tv too, complete with wild itunes visuals.