You will not be able to play DVD backups. This is because the GS or AR2 have a TOC limit of 640MB. A DVD has a TOC of about 2GB+. This means with my calculation the DVD is 1360MB too big for the AR2/GS to boot

You will still be able to play DVD's though...
Get a Messiah or Magic 2 chip - they play anything you throw at them - NO SWAP. Don't mess around with swapping - get a decent chip - You won't regret it!
Summary:
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Play DVD-R backups = No
Play CD-R Backups = Yes but only up to 640MB. Nothing more.
Play DVD's = Yes but no DVD-R games!