XBMC Media Center (which was formerly named Xbox Media Center) is a free and open source cross-platform media player and home entertainment system software with a 10-foot user interface designed for the living-room TV. Its graphical user interface allows the user to easily manage movie, video, photos, podcasts, and music from a computer, optical disk, local network, and the internet using a remote control.
While XBMC functions very well as a standard media player application for your computer, it has been designed to be the perfect companion for your HTPC and NAS. The free multimedia player XBMC is much favored by Xbox owners, especially for its wide range of video and audio codec. (Click for detailed guide of converting/ripping/stream blu-ray movies to Xbox 360)
In order to play blu-ray disc with XBMC, you have to crack the BD copy protections. Now let's see how to rip and transfer Blu ray disc to XBMC and enjoy blu ray movies from your TV by accessing media in your XBMC media center. Note that you must have a BD drive in the first place to support blu-ray playback.
Solution 1. Rip/Transfer blu-ray to XBMC friendly HD video formats like HD WMV,MKV,MP4 with Pavtube Blu-ray Video Converter Ultimate.
Step 1. Get a free trial version of Pavtube Blu-ray Video Converter Ultimate. Install and launch the app, and click "BD/DVD Folder" to load blu-ray disc from BD drive.
Step 2. Click on the “Format” bar, follow "HD" row and choose a desired output format for XBMC. For instance, "HD">> "WMV HD (*.wmv)".
Step 3. Choose subtitle and audio track for the blu-ray movie. Select a title you'd like to rip, then decide which sub and audio track you'd like to keep. Forced subtitles are available, too.
Step 4. Click "Convert" to start ripping blu-ray movies to XBMC. When the process is finished, you can click "Open" to get converted video in output destination folder.
Solution 2. Play blu-ray movie streams from ripped BDMV folders.
If you don't want just the WMV/MKV/MP4 versions, but rather have access to the whole menus of the Blu-ray complete RIP (with BDMV folder), the above mentioned Pavtube Blu-ray Video Converter Ultimate can still achieve the task. Just load the blu-ray disc to the app and click "Full Disk Copy" to full back up blu-ray movie to hard drive with menus. Follow "drive">> "BDMV">> "STREAMS" to find uncompressed M2TS streams when you’d like to play the blu-ray clips in XBMC.
Solution 3. Enable "external player" to watch blu-ray movie with Xbox Media Center(XBMC)
This solution goes with PowerDVD, an approved program that is able to play Blu-ray out of the box on a PC. You can launch an external player for XBMC based on type relatively easy – just like Media portal. Enable PowerDVD as external player in XBMC and then you can open Blu Ray discs in XBMC from BD drive.
Find details in Wiki How to use an external player in XBMC.

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