Movie Streaming?

Hi, I have been doing a lot of research and can't really find a great explanation to do what I want to do. Maybe you can't do what I want to do but that is why I'm asking. I have a huge DVD collection and I would like to rip them all to my computer and be able to stream to my apple tv. I set this computer up just for this purpose, all it is running is ITunes and a shared folder for the apple tv. What is the easiest way to do this. What should I use XBMC, Plex, Boxxie? What file format should I rip the DVD's to? Can I just leave them as images or should they be in a specific file format? Thanks for any help.

If you use Handbrake, you can rip them using the apple tv preset as mpeg-4, which you can then load into iTunes for the ATV to find.

you also need to install the latest version of VLC player (and link it in handbrake to it's location) I've been doing that with my collection aswell.