I've had the E2 for a few years now but I've never tried to play video on it until today.
After reading the information on the support forums on the Palm website and unsuccessfully trying to follow their instructions to get the video to play on the built-in player, here is my advice about what to do to rip a DVD and play it on your Tungsten E2.
1. Rip the DVD using whatever software you happen to have, or Free DVD Ripper. I ripped files into avi format.
2. Convert the file to the right size and resolution using Windows Movie Maker.
3. Copy the result to your SD card using your SD card reader.
4. Install TCPMP on your Palm.
5. Use TCPMP to play the video file.
It might be possible to convert the file directly to the right size and resolution using the DVD ripping program, which would allow you to skip step 2 as long as you put the file into a format that TCPMP will play (which shouldn't be too hard). I'm looking forward to bringing my own handheld video to watch on my next airplane flight or something like that. Please do not violate copyright laws.
I also found this article very informative: