Let me add my 2 cents. Rip the Blu-Ray to the server under LMCE/Linux only works for a selection of older Blu-Ray disks. I've been watching the progress and hopefully this will change in the near future, but for now it's probably not worth trying. After following the progress I'm confident there will eventually be an opensource blu-ray ripping method.
Another option (possibly what posde meant??), is to rip the movie on a Windoze box using AnyDVD HD (commecial program, not opensource or free), then copy the movie or unprotected iso file to LMCE. There may be other options/methods, but currently AnyDVD is the only reliable software I know if, and even that has a list of known movies it will not rip.
On the other hand, DVDs are still quite a bit cheaper, especially if you hit up places like Blockbuster and get their previously viewed DVDs. Sound quality is pretty much the same, and while the picture quality isn't as good on a large screen HDTV, for me it's the better route to go until the cost of BR movies, including previously viewed movies, are on par with DVDs.
<rant>One would hope that the movie industry would learn from the past and instead of wasting truck loads of money and driving up the cost of both BR disks and players to "protect" the movies they would focus on cheaper players and cheaper disks while letting their customer use it the way they want. Seriously, if BR players were under $50, movies were $10 or less, and there was no content protection, who wouldn't switch to BR and rent or buy the movies they want to watch? They can still go after pirates for all I care, one more incentive for people to buy cheap movies. Cheap players, cheap movies, and no use restrictions seems like a far better way to avoid piracy than their current method. </rant>