PowerDvD 10 Blu-ray via Media Center streaming WHS problem

So I upgraded to PowerDvD 10 Ultra from the PowerDvD that came bundled with my drive. I was excited to see that this upgrade allowed me to watch the Blu-rays from within Windows Media Center.

I use DvDFab to copy Main Movies from DvDs to my WHS for backup and easy viewing access. Decided to try their Blu-ray copy to do the same with my Blu-rays.

I noticed in WMC that WMC added the Blu-rays to the Movie library, XML data and all after copying them to my shared WHS folder. I clicked on one and happily I saw WMC go to the PowerDvD addon getting ready to play the Blu-ray. Watching Blu-rays from within WMC was not an option when I had the bundled PowerDvD installed. However, among clicking on the Avatar Blu-ray picture and WMC going into PowerDvD/Blu-ray mode for this, it is only looking for a Blu-ray in the optical drive. It will not play the Main Movie on the WHS. Is there a way to fix this?

Also, the bundled version of PowerDvD I had allowed me to open PowerDvD and then drag and drop the movie's folder I wanted to watch from my WHS onto PowerDvD and it would play it. However, the upgrade will not. I have yet been able to watch a Blu-ray from my WHS since I have upgraded PowerDvD. I would much rather be able to view Blu-rays via WMC add on, but I will settle for viewing them through just PowerDvD if I have to, just can't figure out how.

Thanks

I know I was pretty specific in my post, so I will broaden it..

How do you put your Blu-rays on your WHS? (format?)
Is the format you use as good as quality (sound and video) as watching from the disc?
What program(s) do you use to watch them streaming to your PC?
Do you use software to mount folders as drives?

I appreciate any pointing towards a direction here. I am very ignorant when it comes to formats, codecs, and pretty much anything to do with video editing. I just want to have my Blu-rays at my finger tips as I do my DvDs without having to change discs and whatnot.

Thx