questionscan you recommend an inexpensive multi-disc homeā€¦

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I'd recommend an alternative. Substitute that disc changer with a hard drive. Rip all movies to the drive in high-quality MKV (H.264 + AC3). I have over 200 movies ripped at around 2GB per movie (thanks to the better compression of H.264), and VERY minimal quality loss.

Then, you have the choice of MANY combinations of computer or special-purpose players to connect to that drive that can play out over HDMI and pass through the AC3. I run MythTV on a home theater PC, and connect that via HDMI to my receiver, but with a coaxial S/PDIF cable (passthrough doesn't work on my version of Linux).

Forgot to mention my receiver. I got a great deal on a Pioneer VSX-521-K for my setup - 2 HDMI inputs, one coaxial and one optical S/PDIF.