There are several programs to choose from to decrypt and rip your blu ray movies to the hard drive. Two of the most commonly used programs are free to use, with certain restrictions, and one is entirely a commercial program.
DVDFab HD Decrypter is the free section within the full DVDFab program. It will decrypt and rip your blu ray to the hard drive even after the trial for the main section of DVDFab expires. The only caveat is that this section of DVDFab is not updated as quickly as the full commercial program, so if you are ripping new releases, this isn't going to work consistently. I'm not sure of the lag time anymore, but it used to be about 4 to 6 weeks.
To get updates quickly, you'd need to purchase the Blu ray Copy module of DVDFab after the trial expires.
The second free option is called MakeMKV. It is not updated as quickly as the commercial programs mentioned here, and its primary function is to take the main movie and produce mkv file output, but you can select the Backup option in this program to get a full copy of the blu ray video on your hard drive. The main disadvantage to using MakeMKV is that it is only free while it is still in beta status. It has remained in beta status for years now, but there is no guarantee it will stay there. Also, you have to renew the beta key each month. The key can be found at their forum, in this thread: http://www.makemkv.com/forum2/viewtopic.php?f=5&t=1053
MakeMKV can also decrypt and rip dvds, but the only option is to output as an mkv file when ripping dvds.
The last option is the one I use. It is called AnyDVD HD. It runs in the background to break encryption on dvds and blu ray. It will rip your movie to the hard drive as files, or as an ISO. AnyDVD HD is not cheap, but the prices vary according to whether you buy it for a limited time, or for a lifetime subscription.
I have found VLC to be inadequate for good blu ray playback on the computer. Media Player Classic Home Cinema is the best free player I know of, but none of the free players can access menus in blu ray structure. You can play the main movie, but it is difficult to play extras.
The best blu ray player for computer use is called Arcsoft TotalMedia Theater 5. Also not cheap, but a quick Google search will usually net you a 20 or 30% off coupon code for the program.
You asked about what you will see on the hard drive when you rip a blu ray. You should get a folder with the name of the movie, and within it you'll see a BDMV folder and a Certificate folder. The movie itself will be within the BDMV folder inside yet another folder called Stream.