Sure, you can export the display to a terminal, not sure if you can with sound though.,think you can but not sure.
For example, on the serverbox youve got your DVD drive with movie and mplayer installed.You add an xhost to your client box--> xhost+(ip_address_of_client)
then:telnet to serverbox
then login and:
export DISPLAY=(ip_of_client_box:0)
mplayer dvd://1
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