WRT ripping DVDs - I think in the USA they have a "fair usage" policy, which allows you to make backups for personal use. AFAIK, no such ruling exists in this country, so ripping isn't really legal. Can't see anyone being prosecuted, though.
As a Mac user, I still use Windows for ripping DVDs and Cds, purely because there is PC software available to do just about anything. My Mac dual-boots to XP, and my 1.5GHz Intel Mini can handle DVD rips, no problem.
The Pixel Magic HD Media box that I bought a couple of years ago is just the ticket for storing rips of DVDs, CDs, etc. I've got a 320GB drive fitted, plus another 250GB external drive. You just connect it to your computer, and it's seen as a normal USB drive. Drag and drop the files onto it, then play back on your TV.
It's basically "hard drive caddy" type device, but with software that actually works, top quality video and audio chips, HDMI, network streaming ability, USB ports for daisy-chaining, etc.
Picture quality is excellent - as good as the original DVD played on my Samsung 850.