(EDIT: To clarify, the links above were a suggestion to help the OP determine the address of his corporate proxy. They would need to be modified to reflect the corporate domain, e.g. replace example.com, branch.example.com, or department.branch.example.com with your corporate domain. If you already know the proxy address, this is unnecessary.)
If you get a wpad.dat file, open it in a text editor (it's just a javascript function) and it should list the proxies to use.
There is a video tutorial on how to do this here for a slightly older version of VLC but it is still useful.
Some changes from the video tutorial:
Stream and save has been renamed to Convert/Save (which can be found under the Media menu)
VLC has pre-created profiles for audio and video encoding. you can choose one of those or create your own.
In order to include the subtitles, you will have to figure out which "subtitle track" is associated with a particular subtitle language in the convert/save screen for dvd's. You can do that with trial and error with regular playback and then choose convert/save when you found the options you'd like to use. The default subtitle track is -1 which seems to indicate no subtitle.
Make sure to check the "No DVD Menus" check box. You can start from a particular title and track, though I would recommend letting it process through the end and then cutting out the desired scene with something like VirtualDub or windows movie maker. Some codecs require some post processing attention which does not seem to work properly if you stop VLC's process prematurely.
Best Answer
Easy peasy! There is this fantastic guide on how to Rip DVDs with VLC.
It is for Windows and seems a tad old, but it should still apply
Edit: eHow also has a guide which is a bit nicer