So I ordered a TVIX M-4000P for my wife for Christmas with a 500gb HDD--mainly to get rid of the media that tends to get all scratched up and scuffed (having kids and all) and just to get rid of the clutter around our components as DVDs and tapes start stacking up after a while before we take care of cleaning it up.

For those who own this machine, any advice? One thing I know I will have to do is change the UI to display DVD covers, and there are plenty of posts on here (and other forums) relating to this.

But does anyone have any other advice for us? I don't know a heck of a lot about digital formats, but I do know that there are some DVDs that I will want in the highest quality (realizing of course the amount of space this requires) but we will also want to add a ton of children's movies that will not need to be at the highest quality--what compression format should I use for these?

Any other thoughts/ideas?