Will XP MCE work for hi def or do I need Vista

This is my situation. Currently I rip my dvds to vob, convert to mpg and I stream them to my Xbox 360 in my living room using TVersity. I do notice a slight quality drop using TVersity vs. a dvd.

So instead of streaming, I want to build a hdpc for the living room. This is going to be for movie storage and playback only. No tv capture, etc. I want to rip my dvds (movie only) with no compression and store them in my htpc. I got ripping standard dvds down pat, but obviously if I'm building a htpc, I want to step up to hi def movies also.

Now, I was told that in order to get 1080p output to my hdtv, I need Vista. But I'd rather stick with XP MC if I can.

Will XP work? Or is there some other OS I can use that is meant for what I'm looking to do?