Ripped Blu-rays Play Natively In Windows 7
Good news to report on the Windows 7 Beta front. I was able to confirm, as I am typing this that Windows 7 will play ripped Blu-ray discs with no additional CODECs required. I am using the native .m2ts container NOT a MKV container as I am sure a lot of people are.
Of course you will need to use a third party programs to play Blu-ray discs back from an optical drive due to the DRM involved.
On another note, pretty much any file I have thrown at W7 has played so far. I have nothing in the way of MKV files to test but have tested Xvid, DivX, and H.264 encoded files.