Yeah, U don't need a chip to play dvd movie back-ups, however u can't just drop a dvd video into ur dvd drive an do a straight 1:1 back-up.
DVD Movies are encrypted an the key to decrypt them is in the part of the dvd that dvd burners don't copy so if u do a backup you'll get an encrypted backup with no key for the ps2 to read and decrypt.
U have to use special software to backup dvd movies. I recomend DVDXcopy. This will decrypyt yr movie and rewrite it without the encryption so it'll play without the code. It will also offer u the option to copy just the movie as most dvd videos are dual layer and won't fit onto a dvd-r however the movie on its own will.
DVDXcopy express is also a good program which will slightly downgrade a dvd's quality in order to fit it onto one dvd-r.
For more info on backing up dvd movies check out
here.
Regards