X10 does make such a product and it works quite well. It uses an RF receiver that plugs into your serial port.
As for the comments regarding Home Theater PC's. I don't know what kind of "computer" you've seen DVDs on but even decent laptops provide seamless audio and video (at full DVD resolution I might add).
Any modern computer (P3 500, K7 500, G4 500) has more than enough computational power to handle full screen DVDs. "Home theater PCs (have) failed" huh? almost every new computer comes with a DVD drive, and software or hardware to view DVD movies.
Get the X10 unit, or a wireless keyboard or mouse and you'll be fine. As many, many users at www.hometheaterforum.com
can attest there is nothing inferior about your video card's component, progressive output.