Incidentally, I've tried to do the same sort of thing with popular American DVD movies that just happen to have Chinese subtitles. The advantage there is that I can know the whole plot because it is originally in English, but the problem is that I can't read Chinese that fast. :-) (Notwithstanding, of course, that these are not as culturally authentic as an actual Chinese film.)

That said, may I suggest that you consider Pleco on the iPhone, which has (or will soon have) the ability to read and translate Chinese characters via camera? Check this out: http://www.youtube.com/watch?v=x7VTo0656Rc This might work nicely along with DVD viewing.

Then again, there is obviously no substitute for the diligent use of flash cards, etc. Of course, that goes without saying, anyway.