SteveE said:

cheers Towne32! I think I'm going to use the excuse of buying a Blu-Ray Writer to back up a load of things on the PC. Was going to get an external HD but the beauty of using Blu-Ray's is that I can keep multiple copies of the same files.

I'll google TSMuxer and go from there :) I sense my education is not over yet!

If you want to go the HDD/storage route, another option would be to just use an mkv/iso-supporting media player like kdlinks that you can either stream to via network or just plug the USB hdd into directly.