There is a hack that you can do (soldering on an IDE cable) that allows you to connect a DVD drive and boot games and access files from DVDs. The Dreamcast modding community is still very active to this day. A lot is known about the internals which I find fascinating.
Say what? The Dreamcast used a GD-ROM which was 1 gig, hence it's name. The was an alleged specific model CD-Rom drive with modified firmware that could have read the GD-Roms directly from a PC.
Rippers used a DC with the Ethernet adapter to rip games however.
Now you can also mod the Dreamcast to use an IDE hard drive with Dreamshell and modified bios since the Dreamcast used and IDE bus for the GD-Rom.
There are 2 drive emulators for the Dreamcast where you replace the GD-ROM with a device that allows for either SD card storage or USB.
I have not seen this DVD rom hack you are talking about though