Do you have a dvd burner ??
You will need dvd's to burn movie files and you will need to check and see if your dvd burner is -R or -RW or +R or +RW and buy the correct discs..
You can watch the files on your Laptop, just make sure you have the right codecs installed...
You can either get the VLC media player and/or a codec pac...
If you have XP this is a great codec pac...
Download XP Codec Pack 2.0.7.1 - XP Codec Pack is one of the most complete codec pack
This is the link for the VLC player...
VLC media player - Overview
You will need room on your HDD if you intend to download and burn movies...