Hmm. Well, I would be using a rather unorthodox setup. All I have is a laptop (Macbook Pro), which I plug a second display into so I can use a dual monitor setup. I can get an adapter that will send the second display signal via HDMI; not sure how sound will work yet. I'll keep that HDCP compliance thing in mind when I'm shopping around. As far as connecting the drive to the laptop, I use one of these adapters, which basically let you use any internal drive as a USB drive. Very handy. I've used it for hard drives as well as optical drives with no problem.
Of course the third option is to go with one of those integrated player / receiver home theater setups like this, which I could presumably plug my computer output into for everyday use. Of course this option, aside from costing much more, presents its own problems. One of the things that impressed me about the DIF Panasonic was the job it did upconverting DVD. I don't want to have to re-buy every movie I own, and that player did an incredible job of making DVD look good, and the specs for the home theater setup don't say a thing about upconverting. Then there's the problem of having to either cart a home theater with me wherever I move to, or go through the hassle of trying to sell it and not get ripped off.
Uhg. I really want to make the jump to HD, but there doesn't seem to be a way to do it on the cheap. I'm not even interested in the whole t.v. / player / surround setup; all I really want is to be able to watch the content on my computer for now. I dunno. I'll keep researching, but if anyone has any better ideas throw 'em out there.
All this really makes me a bit nostalgic about when DVD first came out. I didn't need a new television, I just got a PS2 and I was set. The video plugged into the t.v., the sound into the receiver and you were off. HDMI really changed that, because unless you were forward thinking enough or could afford it, you didn't have an existing setup you could just plug your Blu-ray player into, you had to ditch all of that and start over.
Oh well, that's how the technology cookie crumbles. My fancy iPhone 3G I camped out outside AT&T and called in sick to work for so I could get it on launch day is going to be all but forgotten by the time the next one comes out; it's all but forgotten now. Still, if I had the cash I'd be happy to pay Apple's exorbitant prices to have the newest one every year, so I really can't complain about Blu-ray, at least that's getting cheaper. When I think about the $1500 I dropped on a 27" LCD back in '04, and what I could do with $1500 today I just want to break down in tears.
So...Avatar, still works for me.