Here's my advice:
Good luck.
I would love to do the same thing, and I'll be going to school on your dime in this thread.
One low-tech idea is to look to an actual networked dvd player, like you'd have a central home stereo. That saves a metric crapton of digitization space/time/effort, but does still require you to walk to the device and load it. Perhaps some kind of jukebox? One place to look is to do it like a hotel does it. You know they don't have all those current movies digitized.
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Be Just and Fear Not.
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