Best Blu-ray and DVD for the money, OPPO BDP83. It will run you 500 bucks, but it's worth every penny. Your dad's dvd will look a lot better on it then the PS3. It it is also one of the fastest loading player on the market (second to the ps3)
I would keep the ps3 in your room and have the OPPO player in the living room. There will be time when you want to play video game, and your dad want to watch a movie.
The only problem I had with the PS3 was it over heated. You need to leave it in a well vented area. But I'm sure the new PS3 running for about 300 bucks will run cooler. But like I said, keep the system separate and you will have no fights over who want to watch a movie or play games.