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No but you can copy and paste them from somewhere.
The ones you buy or rent through iTunes has the artwork.
Each movie is a bit under 3 gigs ripped at highest quality from regular DVDs. With firewire or usb drives being as cheap as they are now it really doesn't matter.
If you want to watch on your TV but don't want to buy an AppleTV you can also just connect your computer directly to your TV.
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