There are some HD content movies available from Netflix. When you go to their website, check out High Definition under the "Genre" movie options, and it will display movies that have the ability to stream in HD. Otherwise, available titles are SD quality, and the television will upscale the picture, but it may not be "HD" quality as the other titles are.
"Blu-Ray" quality is likely not going to be possible, since a Blu-Ray disc can hold 50GB of content - and it's not likely that any consumer is going to be able to stream 50GB in an hour.
I can't speak for Netflix or their bandwidth. That answer would have to come from them. And for picking a router, you may want to consider discussing your plans with a networking expert so they can help you choose the right wireless router. C|Net has a great Networking Forum for getting started on that.
I just purchased a Samsung BD-P3600 blue ray player and wish to stream video from Netflix. My setup would be a wireless router downstairs and the DVD player (with a wireless LAN adapter)upstairs connected with component video to my older HD tv. Assuming I purchase a wireless "802.11N router", I am not sure what signal range from the router I can normally expect and what I can expect from the video quality. I have read a lot about the video quality being less than 1080i, being throttled back by Netflix, and intermittent. Could you please guide me through what would work best for me and what performance and resolution I may experience?