Will Apple TV Stream Media from Local Computer?

I have ripped a bunch of my DVD's to full quality ISO's and saved them to my PC. I can convert them to whatever format needed.

If this is possible, this is what I would like to do. Sit on my couch and switch the input to the Apple tv. Navigate to what show/movie I want to watch and click play. I don't want to go to the computer and set it up to get ready to play. (I want it this easy so my family can do it to)

Netflix streaming is also desired, but not required. I can already do this through the Wii, but would not mind it all through one place.

Is this something I can set up on apple tv? Or would Roku be a better option for what I am trying to do? Or is there something else i have overlooked?