johnny is correct. You need a minimum of HDMI 1.3 to pass 1080p signals. As for playing your bluerays, be aware that there are only a couple of programs that will do it, but it looks like that drive has PowerDVD packaged with it.
As for the cable, here's one I've bought before and will vouch that it passes 1080p. A whole 12.99.
NCIX.com - Buy ION Cables HDMI 10FT V1.3 Digital Video Cable - HDMI1.3-MM-10 In Canada.
If you need longer ones, check out monoprice.
HDMI Cable