Option 4: Buy a
DVD Mega Changer, use
DVDLobby PPC and
UIRT to control it, and your WiFi PPC to look through your collection and pick the title you would like to watch.
I do this as it preserves the full quality of the DVD's, whilst allowing me to hide all my cases away (and infact even the changer) and giving me a very cool DVD remote at the same time. I also take the second output from the DVD player and pipe it around the house to all the other TV's in the house via RF, the quality is good enough on small/portable TV's. The only disadvantage of doing things this way is that you can only watch one film at a time.
Cheers
Cris.