Something to consider is the WDTV Live. It connects to your TV via HDMI and it also has an ethernet port so it can connect to your network to play files stored elsewhere. The WDTV Live box plays FLAC, VOB, MKV (high def), your various standard definition files as well as many other types.
You mentioned you wanted a wireless solution so you can purchase a wireless dongle that you can plug into the WDTV Live. Playing 1080p video wirelessly maybe be problematic but DVD's will be fine.
Official site
http://www.wdc.com/en/products/products.asp?DriveID=735
Huge discussion on the product.
http://forums.whirlpool.net.au/forum....cfm?t=1309351
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