Time Capsule movie streaming

I've recently bought a 2trb Time Capsule with the idea to rip all my DVDs, copy then to the time capsule, then watch when I need to through my ipad connected to my tv (via file browser). Everything is working more or less but I seem to have two problems:
1) when I try and watch ripped DVDs in avi format it says I need to watch through a streaming website and suggests copying the URL. Anyone have any ideas what websites would allow me to do this?
2) I can get around the above by converting to mp4 but then it seems to be to small, covering only about 2/3 if the screen and I can't make it bigger. Anyone have any ideas?

Thanks for the help

Pcan't make it bigger

What are you using to convert them? I use handbrake to convert my videos, and everything seems to be the same size, quality, resolution, etc.

I'm using winx DVD ripper platinum. Tried handbrake but it didn't seem to work on most of the DVDs I use. Will this make a difference. Just downloaded buzz player which is now letting me watch avi files directly but still not showing in the full screen when I play through my tv