Welcome Chuck
for media playback, given your requirements, your probably best off with a popcorn hour or klegg mediashare device.
these will run you about $200 (US)
the system would work like this:
you copy your DVD's to one or more computers in your home.
you connect the device to your computer network, and to your home theater.
the device opens the dvds you've copied to your home network and you use the remote to navigate the DVD menus, just like you would if it was in a dvd player.
for storage, you could either have a small server with multiple drives, or you could have several machines - I assume you'd categorize them somehow to make it logical.
I personally own the Klegg device, and find it's as good as my ordinary dvd players.
given the size of your movie investment, it's probably safe to purchase one for $200 and mess around with it to see if its something you'd be happy with.
you'll also need a copy of dvdfab (
www.dvdfab.net) to be able to back up the movies to your hard drive. - That'll run you $50