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Another option that comes with a Win Vista premium or Win7 pro setup is Windows Media Center. All you would need is an external drive 500GB or larger (reccomend 1TB) to put the films on as Digital display copies. You just run the the base (desktop or laptop) unit through his Home Theater array via DVI or HDMI as applicable. Then it’s just a matter of how high or low the compression rate you’re willing to live with. Uncompressed AVI’s look fantastic, but take up tons of space. Then there’s MPEG-2 (DVD and HDV quality) that takes up less space but still looks good and isn’t too difficult for mid-range to lower end units to push. Lastly, there’s H.264 (that comes in win media video flavor) to get good quality and save space. The apple tv setup is also a good idea if you don’t have win media center loaded on a pc.