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there are so many options here....
I myself have a hometheater PC also.... I use it to stream netflix movies, play um... movies in file format :) and I also play mp3's on it
I have a file server in my basement... my HTPC is just on a 54mb wireless connection and has no problem playing movies over the air.

I use VLC to play all my movies...... its a free download...
if you want to put a blu-ray player in your pc you can... probably use the latest version of powerdvd.... or you can do what I did and just buy a standalone blu-ray player... they are pretty cheap now a days....
 
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