Setup Question

Im going to be purchasing a 27-30 inch wide TV in the next 2 weeks. Ive got a fairly decent desktop (AMD 1.7xp , 256 ddr, 500 gig storage), and Im debating whether or not to go standalone DVD or use my PC for movies. I have a good number of DVDs backed up on my PC , as Im a college student and Ive left my collection at home. I would need a new vid card, but would you all recomend getting an ATI all in wonder card, and running some component cables into my living room to feed the TV. I dont mind running cables at all across the apt. I would obviously do the same for sound. Id probably use my laptop or PDA with netremote or VNC to control the playback. I wanted to know if I would get better quaility out of an ATI card compared to a standalone DVD player that upscales to 1080i (native resolution of my TV) Anyway, let me know