Fill in the blanks

[irishBoiler]

Ok, so basically, figure out a way to fulfill the requirements with the current hardware. Go!

Requirements:
1. Videos stored on one computer in an organized fashion
2. Access videos easily from Xbox 360 (and Xbox as a bonus)
3. Videos can be stored in high def (blu-ray) and standard def
4. Computer holding videos wakes when the xbox wants to look in it
5. Computer holding videos is a power sipper when idle.
6. Hard drive space of at least 1TB

Current stuff:
A.) 27" SD TV
B.) 52" HD TV
C.) 1 dell desktop (no free sata ports)
- 2.4ghz dual-core pentium 4
- 160 GB HD
- 512 MB of RAM
- Ethernet cable connected to the wireless router
D.) 1 custom desktop (1 free sata port)
- AMD 3200+
- 1 GB RAM
- 250 GB Hard drive
- 1 TB Hard drive
- Ethernet cable connected around to the wireless router
E.) Xbox 360 (connected via wireless adapter)
F.) Xbox (original) (not currently connected to network)
G.) Wireless router/modem (2Wire) (can't be moved due to other phone jack not working)
H.) Audio Receiver

Layout:

------------------------------------------
| | | |
| |H | |
| A|E |D G|
| F|B | C|
| | | |
| | | |
| |
| |
|-----------------------------------------

Options:
You can spend up to $150 on either computer (or something new like a NAS) to upgrade them to meet the requirements.
You can also spend up to $100 on any accessorries (ie, I need a gigabit switch or some wireless adapter or something)
Don't factor OS into the cost, but say which one to use. I do have a preference for Windows to keep everything consistent.