I sell tv’s at one of the big
I sell tv’s at one of the big boxes so this is how I approach the question when people come looking to do what you’re talking about.
1) You have to know what kind of video you have and exactly what you want to do with it. As previously mentioned, codec support is limited (Samsung has to be the best overall). Beyond codec/container is bitrate. Even though Samsung tv’s can play mkv files w/ h264 video, the maximum bitrate is limited to around 18mbps in practice. You couldn’t simply remux a bluray disc to mkv and play it over usb.
2) Some tvs cannot play NTFS formatted drives. I think for 2011 most have gotten with it, but it is something worth double checking if that will be relevant to you.
3)DLNA is (in my opinion) no where near ready for an average consumer to work with. There are too many variables at play, and there is no one server software suite that works equally well with all formats. If your sister leaves her PC running all the time then possibly TVersity w/ transcoding set might work for her to allow all files to play to the television.
4) Most manufacturers abandoned their 2010 smart tv platforms for 2011. 2010 tvs are not getting new app updates by and large, and even if they were their chips might not be able to run the newer programs.
A tv is a one every 5-10 year purchase. A small box, like a Boxee or WDTV is a bit more consumer friendly and cheaper/easier to replace when it becomes obsolete.