Word of caution, until I bought a blruay drive the advisor insisted that I didn't have a HDCP complaint setup, EVEN THOUGH i had dvi to hdmi to a HDCP complaint Television, with HDCP complaint Video card.
As soon as I bought the drive, I had Green lights across the board.
Most of the problems people have are associated with the Software, PowerDVD and WinDVD, etc...
What you're thinking of doing will work, as for free software, that is unfortunately not possible legally...
and you're better off buying either PowerDVD, and/or WinDVD simply for the updates, until the programs and tech are settled... I would start with one, until you find a movie that doesn't play, then get both, that's what I did... Personally, I would recommend starting with WinDVD, but that's just me... considering PDVD's support is lame...
What kind of video card do you have right now?
I would suggest making sure your drivers are up to date, if you use Nvidia, I recommend the newest beta drivers 174.74
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