Disconnecting cable TV service. Any suggestions for Apple TV setup?

Hello.
I don't know if this is the right forum fro my question but here goes:
I'm planning on cancelling my cable TV service and keeping my ethernet internet service from the same cable service. I don't have airport/wireless anything.
I'd like to be able to play DVD's, and to rent movies online. Once my cable box is removed, can/do I replace it with a Tivo, Apple TV, DVD player with netflix capabilities etc? I'm sort of at a loss as to where I begin, probably since I've never used wireless.
My DVD player is on it's last legs, so a new one is most likely an option. Will a DVD player with netflix capabilities be a better bet than Apple TV? Would I need both? Do I need to have Airport Express wireless to use Apple TV?
Any ideas or suggestions for a beginning to a simple setup would be MUCH appreciated. Thank you in advance!

The answer to your main question (which can be paraphrased as "will an AppleTV work for me") is "it depends". The fact that you are considering canceling your cable TV implies that you do not use enough of what it has to offer to make it worth the monthly fee. There have been several similar posts here including at least one in the last couple of moths where a user found that renting movies and TV episodes from iTunes and playing them on AppleTV gave what was wanted at a substantial cost saving.
Turning to specifics, all you need to run AppleTV is an iTunes account and Internet access, wireless unless you have some physical configuration that will let you hook up the ATV by Ethernet cable. Overall, most people seem to use wireless. There are many ways to hook up your cable modem wirelessly. Depending on the service provider it may already have the capability. If not, run down to BestBuy (I assume you are in the US since you reference Netflix which is a US service) and buy a wireless router, hook it into the modem and off you go (ask the BestBuy staff if you need more specific direction).
Other issues: your Netflix question - are you thinking about on demand Netflix as opposed to their rental service? If so you need some device set up to access the service (Netflix will sell you one, and you can also make it work using an Xbox or Sony PS, for example). Right now the only content you can download to the ATV is what you get from iTunes.
If you look at past posts here you will see that opinions vary on the adequacy of the iTunes library and quality of the video. Some of us, including pretty heavy users, are more than satisfied by what is available in terms of content and quality. Others are not. It won't take you long to figure out who is in what camp.
You do not say if you use iTunes / want to have a user-friendly interface to play music without having to have the computer on and running iTunes. If you do, then this is a big plus for AppleTV.
Last point, if you think you may be a very heavy user of download material (to an AppleTV or anything else) and are seduced by the promise of HD, there are two things to bear in mind: firstly, Netflix doesn't offer HD movie downloads, and iTunes only provides HD movies to rent (but you can purchase or rent standard def movies, and TV shows are available in HD); secondly, HD offerings are large files so make sure that there are no download limits from your ISP!

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