Fair use scenario - Miguel and the DVD

In a continuing series of scenarios that explore educational fair use issues. You comments are most welcome.

Miguel, a high school civics instructor, wants to use a short portion of the movie The Candidate to spur discussion on election reform in his class. To embed the the clip into his slide show, he will need to "crack" the copy protection scheme on the commercial DVD.

1. What is the copyrighted material? Who owns it?
2. Does the use of the work fall under fair use guidelines? Is the use transformational in nature? Can this be considered "educational" use?
3. Which takes precedence - The Digital Millennium Copyright Act of 1998 that "makes it a crime to circumvent anti-piracy measures" or the Educational Fair Use Guidelines?
4. What is your level of comfort in helping create such a product? Are there any changes or limits you might like to see that would make you more comfortable with this project?

Your level of comfort with this use of copyrighted materials: High 5 4 3 2 1 Low

Thanks to Miguel Guhlin at Around the Corner for the idea for this scenario.