My Friend Broke Something Of Mine And I Am Keeping The Collateral.. Am I Right?

I think you are legally right, but you might want to think about what it does for the friendship, as should she. First of all, there's no reason for anyone's mommy to get involved, so that's not boding well for the situation. Second, she should have given you the money or bought you a new one without the subject of her DVD and the whole collateral thing coming up, that's just the right thing to do. I have to wonder about one mother, much less two of them who get mad at the person who lost her DVD, but don't urge the one who broke it to do the right thing and replace it. The fact of the matter is, you do have the right to keep her DVD until she replaces yours, but real friends shouldn't have to get to this point in the first place because there should be trust and the desire to do right by each other in the first place. This is why I just don't loan my stuff out in the first place. If someone wants something I have, like a CD or DVD, I just make them a copy. It's only bootlegging if you charge for it!