HDCP is hardware to hardware encrypt/decrypt between the output device and HDTV, the 7 Series card have the basic functions built-in but it is not enabled on earlier card. HDCP require that the hardware on both ends have special vendor key to be programed in them to allow the video to play to a HDTV. The key are royalty based(from what I understand) so many vendor never put them in to the cards. There are no keys required to play blueray disc to the built-in LCD on a computer. You will need a a video driver that supports blueray for it to work. The other problem is the bandwitdh required to play Blueray/HD-DVD is huge. May card just can handle the amount data that has to be passed to play the movies (38mbit I think). The 7900 series should be able to handle it.
As far a copying them no the blue ray video disc are around 25 gig and the blueray-r disc are 17gig max I think. Plus the media is expensive right now.
Note: not everything I just typed may be 100% accurate I going by things i have been told and read.