Here's my solution: don't use a dvd player.
I have a dvd drive on my computer, and if I ever want to watch a dvd I just lean back in my chair, turn up my 5.1 system and watch my 19" viewsonic monitor in bright mode.
If you prefer not to watch movies on your computer, then buy a video card with tv out, and just hook it up to your tv. Then you can plug your sound system straight into your computer. Some people even make cheap computers called divx boxes for viewing divx movies. Divx is the most popular codec for encoding full length movies, though xvid is popular as well.