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you can convert the audio to eliminate the cinavia problem. it is very time consuming however. I did one video that was split into two "CDs" (old school) and i was already sick of doing it after the first one. if you would like a pdf of how to do it just PM me.
I got tired of transferring files to thumb drives (and got tired of burning a looong time ago). I have been quite happy with the Western Digital media players. I've got it (them, actually) networked, and open all my files from one folder. Transcoding options (like TVersity et al) suck. Find a device that natively supports your files, and be done with it.
HTPCs are also nice for their ability to do whatever you throw at 'em, but cost more, and usually have fan noise. I like the media players myself.
You can slap together a mini-ITX HTPC that is cemetery silent and the size of an oversized DVD case in less than 60min. It will cost around ~600 though. That can drop to ~350 if you choose a slightly louder midi tower. Small parts are not cheap. I personally would stick with a mid tower. I couldn't care less about size and noise isn't that different. More importantly, a chunky mid tower is easy to work in. You won't slice your fingers up fiddling with a tiny case.