Dude, you're a little behind on this stuff. I've been watching shows and movies online for nearly a year now.
Here are some of my favorite sites:
http://www.ovguide.com/ - Online Video Guide, good site to find the best video sites
http://joox.net/ - Joox, great Divx movie site
http://episodenetwork.com/ - Episode Network, haven't used it lately, but me and my roommate would use this site to watch movies that were currently in theaters during the school year.
If you're interested, I can give you some tips to watch online videos on your TV if you are using a laptop (or a computer positioned nearby a TV).