Sure, MediaCentral plays your DVDs and VIDEO_TS folders. But it can do so much more: Quicktime H.264 with AAC (excluding FairPlay protected files) and AVI are fully supported. A full list of supported formats:

Access your favorite iTunes videocasts from MediaCentral's movie menu. Whatever you are into, cartoons, technology, medicine, or anything for that matter, you now have complete access to all your saved videocasts directly from MediaCentral.

If you have media that has an associated SRT file, you can enable and disable subtitles with the touch of a button - actually the "s" key.
Just be sure that both the movie and the SRT file are in the same location with the same name and the proper extension.

As the movie component of "My MediaCentral", this is where you will be able to store and access all your local and network video content. If you create a folder structure within the "My Movies" folder, it can easily be navigated when using the "My Movies" section. Access your movies your way with "My Movies".