Really? That's interesting. The codecs on a BluRay disc are bit perfect (that is, whilst the compression system is lossy, there's a defined output for a given input - the decode process should be identical on each player). For BR movies at 1080p, this should just get sent to the display digitally with no further processing (assuming you have a 24p capable display). If there is a difference, it's because it's messing with the signal before it gets output. Clearly playback of DVDs is subject to processing, and there would be differences here...
Perhaps im being a little vague, there are other things that affect user experience, power on time, processing speed for Java, the ability to update then add various post processing crap that some machines put on images, edge enhancements, colour control etc that impact on the final image quality - for 1080i most players just shove straight to TV, so if your TV sucks you'll notice, but more and more players deinterlace first. Players like the pany BD50 process images before sending unless you turn it all off. After image comes audio, again, processing is the key, some are not as good as others.
All my silver discs are ripped either as 1080p or 720p (there isn't much of a difference TBH) with the audio track kept intact. All audio CDs are ripped as single FLAC files and are completely lossless. I do have a set of mp3 files ripped at the same time for use on a (non Apple

) mp3 player though.
so you DO have the silver disks, just through a media server.
Video playback is through a professionally calibrated Pioneer display (you do have a calibrated screen don't you?)
yes I do, ISF calibrated, but then as I work in the custom install industry it would be silly not to.
whilst the audio chain is through a pretty high end stereo system (not surround due to the cost!). I don't even have a subwoofer - but I do have full-range speakers that each have a 15" bass driver. Far better to do 2 channels very well than several to a lower level IMHO.
I dont disagree, though personally i prefer to have the surround sound through a system. eventually it will be a dedicated room when i can get the kids to move out, however ive been in my fair share, rooms ive been involved in have won awards, which is nice.
As to HDD - I have an enterprise class filesystem running in RAIDZ (like RAID5 but more secure as everything is checksummed) with a hot swap disk ready to be swapped into the array should one of them fail. All silver discs are kept offsite and whilst it would be a pain ripping the darned things again, it would be possible.
The central filestore is accessible to both media centres AND wirelessly to the laptops. The media centres and laptops run the same software (xbmc) and all share a common imdb based database so it is possible to do things like "find all films with Tom Cruise" in (why you'd want to, I don't know). People can be in different rooms streaming anything on the store to their output device.
One of the media centres also has a satellite card in and acts as a central DVR (we don't have, or will ever have, Sky). It can be set to record series or one offs through a web interface which has a 14 day EPG in. I then recode the recorded files (this has only been practical for HD this year with the acquisition of an overclocked i7) and these are added to the filestore and can be viewed anywhere (again with full TV database information).
I admit I am not the norm though.....
If you didnt have the silver disks, you would have to download it all again from whichever online provider you've bought from. Physical disks work best for me, I wont move away from them until i get the dedicated room, then ive got my eye on a nice media server, rack, crestron controller, Screen Research Screen, Procella speakers, sony projector and panasonic hardware
PS. Why does a dodgy internet connection come into it? Surely you aren't suggesting people download movies are you.....?
im talking about streaming, cant stand streamed stuff!