i never said what i was doing was illegal in anyway. Just more convenient to see my collection on the big screen and choose a movie to watch.I think streaming a movie with 35Mbps is goin to really tax your network. Western digital has the WDTV live which should make it possible to do what you are asking.
http://www.foxreal.com/stream-bluray-movies-to-wdtv-live-for-hd-playback-on-tv/

Personally i would recommend a htpc or a long hdmi from you computer to tv and run something like total media theater.
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