Streaming movies to PS3 or Xbox 360

Ok, i have decided to start ripping dvd movies to my hard drive with hopes to view them in another room by streaming them with either my PS3 or Xbox 360.  I am not looking for any "fanboy" thoughts, so please don't bash one just cause you don't own one.  I just want some help in: 
1. What software to use for ripping to hard drive?  I have heard handbreak, any thoughts? 
2. Once ripped, do i need to decode the files?  
3.  Do i need special software running on my computer such as Tversity? 
 
Currently i am using a CPU running Windows XP Pro.  That is in my computer room while i have both an Xbox 360 and a PS3 connected to my TV downstairs.  I don't care which one i use i just want to be able to put my DVD collection on my computers hard drive and be able to stream movies any time.  Thanks for all your help.

I've recently just started streaming aswell, but I've only streamed downloaded MPGs or whatever.
When I rip a DVD, I use DVD Decrypter, i find its the easiest to use and very lightweight. I use DVD Shrink to convert them into files that I burn back onto DVD, I'm assuming it has some sort of convert to a viewable movie file on PC's though.
 
On a side note, does XP support streaming? I'm running Vista, while another computer in my house is XP but I can't find any way to enable file sharing from it.