whoa that sounds amazing. considering that its streaming, will there be lag issues?
On your own network at home, no.
If you would use it for streaming over the internet, so you can watch your vids anywhere you are, it's limited by the upload speed of your internet connection.
I am adding profiles to DVD Catalyst that will let you select profiles that will play pretty decent on any internet connection, but it will have quality loss.
My DSL internet at home is a 3MBit connection, which allows me to download at 3096 Kbps, however, my own upload is 768Kbps.
The trailers (hosted on a website host provider) are encoded at 1660Kbps (1500Kbps video + 160Kbps Audio) so there is no way for me to stream that quality from my DSL connection without lag/buffering, however, a wifi network will be more than capable to handle this.
The standard Droid profile in DVD Catalyst is even a little too much for streaming on my DSL, since that totals at 928Kbps (800+128).
So, the streaming profiles I am adding are optimized for specific upload speeds. Depending on the upload speed, they have a reduced screen resolution (I can stream good quality iPod Touch files on my home connection without issues) and lower quality settings.