I like all the suggestions, but I'm wondering if there is a better way to library and view dvd's. Do you have any other thoughts or suggestions on how to achieve not only user friendliness, but also quality during play back.
Archiving movies on HDD is user friendly and the playback quality is the same as if you were watching it from your DVD player (assuming you have the correct connections). If you have a DVD player in the PC, you can also watch movies from directly from that device.
Use something like PowerDVD or TheaterTek to play back DVDs. There are many options for video and audio. I know you can get a remote for PowerDVD, and you probably can as well for TheaterTek. It's all pretty cool.
I believe PowerDVD supports HD-DVD and BluRay as well.
If you need to tweak your video card's output to values that are outside its normal range, you can use another program called PowerStrip. It will allow you to get just the right display resolution for your particular display device.
Of course, and as noted, you have to have the correct connections for this. In general, to watch movies, you are going to have to connect the PC to the TV and the receiver/preamp. The quality of the audio and video will be limited by the video card and audio card. I would very much suggest connecting digitally for the audio (one way or another). There are also a variety of ways to connect to PC to the TV. You can go HDMI/DVI or VGA or component. Or any lesser means, such as S-video or composite (these would be last resorts in any case).
You can also use TV cards to demod a cable TV signal and record it to your HDD. The TV is then behaves something like a DVR or "Tivo."
Good luck!