Error Couldn’t open DVD device: /dev/dvd (No such file or directory)

Below error appears when creating a avi out of a DVD, is an mencoder error:
MEncoder 1.1-4.8 (C) 2000-2012 MPlayer Team
libdvdread: Can't stat /dev/dvd
No such file or directory
libdvdread: Could not open /dev/dvd
Couldn't open DVD device: /dev/dvd (No such file or directory)
No stream found to handle url dvd://2
Cannot open file/device.

To fix the problem, create a symlink to the /dev/sr0 device and name that link dvd.
$ cd /dev <enter>
$ sudo ln -s sr0 dvd <enter>

After creating the link, it will work.