There is no 'Flytouch format' - but it does play most of the common video formats, I can play .vob, .mkv files without any problem.
So to answer your question, you need to 'rip' your DVD (google how to do this) to one of these files, save to your SD card and then when you open it through File Manager it should just play.
Look for an application (desktop, windows and mac) called "Handbrake". It's free and works great... takes a little while to figure out but the effort is rewarded.