Pc/blu ray questions

[Fresh]

I'm sure there are a thousand threads like this one and for that I apologize for not reading into it further...but

I currently have a cheap dvd/cd drive
http://www.newegg.com/Product/Produc...82E16827106335
I never installed software or anything and the basic windows media player audio doesn't work...but windows media center has always worked fine

I'm just not that impressed by most dvds, and in many cases think the quality looks worse on this monitor than a standard tv and was wondering if it's because of the DVD player/lack of software, the dvds possibly not being put into widescreen properly? or the monitor's high res? Computer can't handle it?
Next are Comp specs then the more Blu Ray related qestions

My Comp Specs
Moniter:SAMSUNG 2343BWX High Glossy Black 23" 5ms 16:9 Widescreen LCD Monitor 300 cd/m2 20000:1 (DC) w/ HDCP Support

Windows 7 64-Bit

Radeon 5770

Phenom II x4 3.2ghz

4gs of ddr3 (although it's not operating up to it's 1600 I believe it's below 1333 without propper settings, which i never bothered to look up and fix)

MOBO:ASUS M4A79XTD EVO AM3 AMD 790X ATX AMD Motherboard

Would getting blu-ray make all dvds not just blu-rays look MUCH better on this monitor? crisp even when maxed? or is my computer not capable of handling it?

If so I was looking for a cheaper Blu ray player in the $60-100 range
but have seen that most people have trouble with windows 7, and that the basic software doesn't work for everyone and if not you have to pay another $100 for powerdvd or something along those lines?

and by using a DVI to HDMI adapter do i lose quality? the monitor only has DVI and thus I wasn't sure if it would ruin my blu-ray endeavor?

and If i do a HDMI adapter i need a seperate audio cable? can anyone explain this a little further to me?

Sorry for the length and the lack of organization...and lack of searching for my own answers but I just don't want to make any mistakes...let's just say my cash flow is rather limited and I don't want to waste what little money I have

Thanks for you time
-Rob