First a bit of background: Kaleidescape is a high end media server vendor. They make boxes you have a custom installer put in one spot, which connect over a wired network to smaller boxes your installer connects to each TV and projector in your home. You - or your installer - copies all your DVDs onto the big box, and then you can watch all your movies anywhere in your home. Basically, it's Sonos for movies for rich people. How rich? Kaleidescape was actually the reason I instituted a policy not to review anything I could not reasonably afford. Years ago Kaleidescape offered me a full setup to review; I refused because I didn't want to take out an insurance policy on a loaner, and I didn't want to take out a second mortgage on the chance that I couldn't bear to return it. A full Kaleidescape system in those days easily topped $50,000. Prices have come way down, but most systems will still end up in the $20,000 range with installation.
I had good reason to fear wanting to keep a system. I have used Kaleidescape at trade shows and have been consistently impressed. It is fully babysitter proof and requires no technical knowledge to use whatsoever. As all the movies are ripped to the system's hard drive(s), movies start instantly. However, its one downfall is that until now it only supported DVDs, not Blu-ray discs. As many installations include equally expensive HD projectors, this is a real problem.
Kaleidescape's first stab at the problem was adding Blu-ray support to the M500 player - one of the small boxes you'd have near your TV. That certainly enables you to play a Blu-ray disc (both at that TV or anywhere else in the house), but it still requires physically handling the disc every time you want to watch a movie and it is not all that much better than a regular Blu-ray player from Sony or Samsung. The whole point of Kaleidescape is access to any movie you own instantly thoughout the house.
Kaleidescape is now selling a partial solution to the problem: you can rip Blu-ray discs to the hard drive in the server, and it will play off the server (which means you can include it compilation video playlists). However, to appease the copyright gods, Kaleidescape still has to physically verify that you own the Blu-ray disc before playing any of its sweet 1080p content. To do so, you'll need a media vault ($1500), the ugly box pictured on the right, which can hold up to 100 Blu-ray discs. You can add as many of these as you like, but each needs to be connected to an M-class player (like the M500). In short, Kaleidescape now allows Blu-rays to be treated just like DVDs, only there is a lot more complexity and kludginess involved. It's better than nothing, but it has to seriously pain Kaleidescape's management and engineering staff who have made simplicity and elegance a core part of the product's value proposition.