I've seen a video of someone playing blu-ray movies on their macbook pro with an external drive. If a drive isn't hdcp complient does that mean that you can play the movie but you only get 720p?
No, it means it won't play it at all. Gotta have HDCP in the drive, video card and display, otherwise it won't play Blu-Ray discs.
Then again, macbook pro's hardware is hdcp complient, but the software portion is missing but available if you boot into windows right?
I'm pretty sure the video card in the MBP is compliant, and the MB's is almost certainly compliant (unless Intel has made two versions of x3100, with or without HDCP; or if Apple has disabled HDCP - which would not surprise me at all given their history of disabling their computers). But I suspect the displays are not compliant. If you connect either to an HDCP-compliant display (e.g., HDTV) then you'd be set, since all Blu-Ray drives and HDTVs sold today are HDCP compliant. So, yes, you'd have to boot into Windows to play encrypted Blu-Ray discs since there is no Blu-Ray player software for the Mac (come on Apple - gives us Blu-Ray Player app). If you drop the US$100 for AnyDVD HD, it will remove the HDCP requirement so that you can play Blu-Ray discs with any gpu or display and at 1080p.
Anyways, when you say "rip" and then play back with plex, do you mean encode the movie? Or can you use anydvd to remove the encryption, save it to the drive as an iso, use an iso loader, and then some software to play it back?
AnyDVD HD removes the HDCP requirement and decrypts the disc. It simply makes a copy of the m2ts files with these codes removed, all the while preserving the file structure of the disc (i.e., an exact copy of the disc on your hard drive, but without encryption or HDCP). It's still a Blu-Ray disc file, but now it can be played on any computer, even on a Mac (provided you use Plex or XBMC).