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Handbrake is great for building a movie library that you can use on all your devices. It's free and has proven to be slightly faster than the pricey Popcorn app from Roxio. The catch ... one great free app requires another.
VLC is required to use Handbrake. So for playing Windows formats, use Perian and Quicktime X ... because there's nothing better than OS integration. But for compressing movies to your favorite format, Handbrake is the way to go, and for that you will also need to grab VLC.