1. To watch Blu-ray movies on a PC, you want TotalMedia Theatre 3 Platinum.
(You should test it first with the trial version to verify it works to your satisfaction on your hardware. Note that the current trial version does not include Dolby codecs, so if you want to test the full experience with audio, make sure to rent a disc or two with LPCM or DTS audio tracks for testing purposes.)
2. You would need to purchase the SimHD plug-in for TMT3 to achieve this.