Getting rid of cable: Help me build my HT setups

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i have decided rid of cable tv (that never watch) , go different solutions tvs.

plan store media on mac mini 1tb mirrored drives connected.

downstairs tv:
- buy apple tv , connect receiver , let pro logic out (we have 3.1 system downstairs.)

upstairs tv:
- use mac mini , connect tv's vga input. sound, important 5.1 out , know there solution can converter take aac signal mini , translate 5.1 signal receiver can handle. best solution upstairs?

tvs both 1080i plasmas.

handbrake, using '6 discreet channel' option , wow taking alot of space/time rip. not mention, files alot larger thought be. 1.5 hour movie made backup of 2gb in size , took on hour on macbook! there other options out there reduce time/file size?
 



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