"Servers" are only serving files, not playing it. You need a server to store your files and a "client" to play it.
A server can be a NAS (simply consider it as a network drive, very simple machine with low power consumption and made to stay active 24/7), a PC or a dedicated PC build to run as a NAS. In your situation, if you want to rip 1300 BR, you would need a NAS with at least 8 bays (8 HDD of 6 TB each) which will cost you a little fortune... A PC with a huge number of bays and running a dedicated software like freeNas or unraid will cost you a fraction of the NAS (HDD price aside) and would easily accept more than 8HDD. But it's fairly more complicated to set up (you can find some prebuilt solutions if needed).
A client can be many things, from a media player (simple to set up most of the time, the most difficult part is to chose the one that will fit your needs) to a high end PC made to give you the best PQ that even a 1500$ BR player won't be able to achieve (but again this will need some hard work to set up). This will be the client that will build your front end (I.e. All the beautiful menus that you will need to navigate amongst your movies).
Or you could have both in the same place and built a crazy PC with all your HDD inside, but this would be an awful beast sitting under your tv
(not even mentioning the noise it will do).
As for ripping dvdfab is perfectly ok. If you already know how to use it, you already now how to build your collection.
