The HDCP handshake will work using a DVI-I to HDMI cable just fine, it's what I use when I game on my 32" LG and my 42" sammy. Also, HDCP isn't really in "effect" yet, I'm not sure when it will be. For your Blu-Ray drive for your PC, I'd suggest Lite-On's. I got mine at Frys last week for $150 and am very happy with it. Just make sure you got plenty of RAM to go around. Blu-Ray playback requires hells system resources.
9600GT for sure. Cheap, you can pick a Foxconn up for under $150 I believe, and it'll perform around a 8800GT. For WoW you'll be set set.
Also, just an FYI. When using a DVI-I to HDMI or an HDMI cable to your TV from your computer, you can game on 1920x1080 interlaced on newer (In the past 3 years or so), 720p sets. TF2 looks amazing at that resolution, and I'm sure WoW would look like and play smoothly with a 9600GT at that high of a res.
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