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Video quality is one of the main areas a set top solution differs from a PC solution. Without the TV-Out to accompany it, a PC-DVD player will confine you to watching movies on your PC. But even with a stand-alone decoder card, with all of its digital audio and s-video outputs, you may find it to be lacking. There are three types of outputs that can be found on most DVD players - composite, component, and s-video. Composite is of course the worst of all of these, but is compatible with most television sets and uses an RCA connector. Component is the best looking and most expensive, and separates red green and blue into three separate cables. Finally, s-video, similarly to component, separates the video signal, reducing noise, but then runs the signals through separate wires in the same cable, making it a cheaper solution. Most PC DVD players only support s-video and composite outputs, while most set tops support all three. While this is not a serious issue at all if you don't have an expensive TV with component inputs, it may be worth considering.
One final thing to note about DVDs is that they are copy protected with a technology called Macrovision. For the most part, this technology is inconvenient. While accomplishing its goal of preventing people from making VHS copies of DVDs, it also prevents you from running your DVD player through your VCR to your TV. This becomes a problem if you only have a single input on the back of your TV like so many old televisions do. What will happen is that the DVD will send along it's video stream with a Macrovision header, and then when the VCR sees it, will activate it's copy protection and output a signal that phases in and out. This makes viewing a DVD very unpleasurable. With both types of players, there are workarounds. The PC workaround usually comes as a freely available "hack", while the set top version is a more expensive piece of hardware. Of course hooking the device directly to the TV will prevent this problem from arising.
If you still haven't decided whether you need a PC or set top solution, it all boils down to the value added features. Currently, if you desire DTS support, set top is the way to go. Digital Theater Sound (DTS) to some is an important feature, but as only about 30 DVDs currently support it, it may not be the best reason to stick with set top.
One more reason to go set top may be multiple trays. With the convenience of having the original and its sequel in the player at the same time, you can sit down for five hours straight. Which brings us to the next set top advantage - the remote control. This may not seem like a big deal right now, but take it from one who has tried. Getting up every time you want to pause the video for a phone call, or rewind it to a part you missed can be quite annoying. With some set tops you can even zoom in to get a better view, all from the comfort of the couch.
PC DVD players have their advantages too. Doubling as CD drives, their value is increased, as you are getting basically two drives for the price of one. Then there are the DVD-ROM titles. While not even close to being mainstream yet, they are starting to make their appearance on the market.
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