I have found a great legal movie download site which I am enjoying myself. Movies Capital. The premium option is only about $40 for unlimited legal movie downloads for 2 years!  It is a great easy to navigate site, the downloading is easy and quite quick, it only takes about 90 minutes for my mediocre speed connection in Australia to get a full movie from the server in North America somewhere.  My first question was is it really legit. The movies they have are licensed to them to distribute and so that end users can burn on DVD for private use, great!  These guys have been going two years or so now and the movie downloads come straight from their own servers.  Support service is really good too, they even work weekends I believe. Will the movies work on my DVD player?  If you have a later DivX compatible player you can burn it straight to disc in a few minutes and watch it on TV.  This will give you the best quality viewing, but even better is if you can plug your PC into your TV with a DVI, VGA or HDMI cord.  You could even use the streaming option and watch it as it downloads immediately. If you have an old clunker DVD player like me, the DVD burning is a bit more involved. I have Sony DVD Architect which costs about $40 but DVD-flick available here for free is simpler option you can use.  I tried it and it works great.  Recoding the AVI and burning the dvd like this takes a long time, hours, but it can be done in the background. 

Choice of movies: I do get commission if people sign up through my links (which does not affect price) but I really want you to know what you are getting.  The choice of movies available does NOT include the latest A-List movies.  (this would make the price astronomical, think about it)  The late release movies that are available are lesser known titles.  I was actually a bit worried that I had bought into a poor selection at first, but I have downloaded and watched some already, and most of what I have seen so far has been surprisingly good.  Of course some of the movies are really crappy. (but you get that at the video store and the cinema anyway) I have experienced a reasonably good keeper rate so far though.

Conclusion:  Movies Capital is highly recommended for a very economical way of getting good quality legal movie downloads and cheaply adding to your DVD collection.  Great value for money.