KIWIKARLOS,
I've had a successful setup for 2 years. I am using XP media centre 2005. Media centre edition of XP is simply XP Pro with some add ons. It is also crippled in the ability to join a domain. Apparently the original version had domain support. The only time I use the media center add ons is for showing photos. It has a good setup for that. With media centre, I have found it extremely finicky and very sensitive to signal strength on digital tv. I wanted a solution that works as well as a set top box with benefits.
I use the Digital Now cards.
www.digitalnow.com.au as their software works well, is written locally and the owner often answers people's queries directly on the
www.dtv.com.au forums.
I have 1 terrabyte in the media server for audio and video and have it connected by ethernet as wireless would occasionally give me grief with reception of the tv cards.
I've used the cyberlink, nvidia's purevideo and intervideo's video codecs and have found the latest cyberlink codec works best for me.
After using ATI and Nvidia cards I found the Nvidia 7 series to be the easiest to get set well and the 7300gs works well. I'm not interested in Blueray and hddvd until the dust settles on that. Specifications still aren't set for blueray as yet.
Heat is the biggest issue to overcome on a HTPC as you need fans to cool it. Fans make noise and can be very irritating. That was the reason I went for a 7300gs video card. It has the HDTV specs but is underclocked and runs with passive cooling.
To modify the cpu and case fan speeds I use a little app called speedfan. It monitors heat and adjusts the fans as required.
A good learning remote is a must. That doesn't mean an expensive one though..You can use a program called HIP to convert keystrokes into IR signals to save to your remote.
You could probably get a laptop to do the job but I would probably go for a simple setup pc instead.
I run a 3200+ athlon 64 cpu, Asus A8N-E motherboard, 1 GB ram, 2 pci tv tuners. Watching true HDTV or video my CPU usage is about 30%.
On startup my pc only uses 190mb... Keep the PC clean without any unneeded applications and you will be okay.
Once you get your machine loaded, do a hard drive image so if you do load the pc with crap, it will take 15 minutes to get you back to a clean install. If that isn't possible, at least do a system restore and name it as such.
People will tell you you need the latest of everything to have a homne theatre PC. That isn't the case from my experience. I've found those that keep updating drivers and software and hardware are forever finding new issues cropping up... As I said, I have found a simple system that just works. It's not quite like a consumer PVR but it's damn close and has so many more benefits..
If you like, you can pm me about anything regarding your system and if I can help, I'd be happy to..
Cheers,