Copy the .vob files into your computer.
Rename the .vob files as .mpg or .mpeg files. Then, any software should be able to access them, even Windows Movie maker.
Your HTS should work just fine with your TV and any HDMI cable.
Make sure, on the HTS system you change the settings to output on a 16:9 TV at 720p or 1080p (depending on what TV you have).
Since you get video out of a sat box, you don't care about the TV out. It is useful only when you use a tuner.
(Coax out is digital audio out)
So, connect set-top and BD player optical out to the home theater system optical and you are all set!
On the set-top and BD set the audio out to be Raw...
Lets start with video part. Assuming your TV has at least one component input, you can buy a Component A/V switch, with at leat 4 inputs to connect DVD, xbox360, apple TV, and Ps3 (the wii is SD)
Assuming your DVD player (or Hometheater in a box) has an AUX input, you can also buy a digital...
I am not sure there are any ideal dimensions.
For width, it all depends on how big your screen is going to be and how much extra space you need for speakers and how many people you want to sit per row.
I assume you want about 100" screen, which means a width of at least 89" and a height at...
two possible causes
a) The contrast on your TV is actaully not that good, so the TV can't display true blacks - there is nothing you can do; quite common on LCDs.
b) (Most Likely). Your TV has an automatic contrast option turned on.
(Sometimes called Dynamic contrast) It usually works, but...
People who used it may be too embarassed to admit it, but use simple logic and think
Why would most people pay $70+ per month for cable or satellite if it was free on the internet? Why would the broadcasters offer free programming? Why is Direct TV and Dish and ATT still in business?
It is...
Depends on how big your TV is.
If it is bigger than 42" then a well-mastered BD movie at 1080p should look slightly better than a TV broadcast at 720p or 1080i, but I doubt most people can tell the difference.