Yeah, a blu-ray drive is needed. Still a blu-ray ripper is also needed. I always use Pavtube Blu-ray Ripper which can help me rip Avatar DVD and Blu-ray Disc to my PC. (At the moment, rare similar tool can handle Avatar Blu-ray Disc) The whole process is claimed to maintain original quality with reasonable speed.
Here is a tips showing how to rip your Avatar dvd and Blu-ray Disc to your PC:http://portable-media-device.com/?p=126