Comment Homebrew Raid (Score 1) 371
I struggled with this problem too and ended up building a homebrew raid using OpenSolaris and a large CoolerMaster case full of drives. The ZFS filesystem has been bullet proof on this box since 2005. I ripped all my DVDs to ISO format so that I could preserve the DVD menus on those discs. The box sits on my network and is shared via NFS and Samba.
To play back all those movies on my TV, I put my older Mac Mini on it and have it boot up into a default user and start VLC right away. I use VLC Remote on the ipad to access the library that is NFS mounted on the Mac Mini.
The overall experience has been great! Using the iPad, I can browse hundreds of ISO images, select one and it plays within a few seconds.
The iPad remote solution was the final peice to this puzzle as I was previously using a mouse and keyboard to navigate the movies.