Need advice on building a media center PC

There are still a few unknowns for your needs.

However -- one thing first --- I know this is the [H]ardforum and all, but your needs sound so basic that you should really consider just buying a bare-bones system and just adding the components you'll need. For example, I priced out a min config HP Slimline for $299 that has a good svelt case and ample hardware specs. And that's without any coupons which float around from time to time. Once you start building a rig that has higher needs, like HD/Bluray extras, etc, then I think a DIY is cost effective and fun. But at this price range and requirements your time building the PC, if you save any money, is not going to be worth the small amount of money possibly saved in a DIY. Plus, you will incur all the little incidentals like paste, screws, cables, getting a keyboard/mouse, etc in the DIY that are just a pain and add up. Normally that's not a biggy, but again, your budget is low. Finally, its for your family, and I know I wouldn't want to be supporting a DIY that didn't belong to me.

Anyhow, you should consider how you're getting the TV signal. Do you intend to bring it in from a cableco STB? Or are they planning on just getting whatever locals you can get straight from the wall? That might affect your tuner choice, but likely wont since HD isn't an issue.

I'm assuming that TV has component in at best. You'll need to make sure your video will get over there.

Other considerations:

Make sure you get a tuner card that has a remote that it is Media Center compatible and, if applicable, has all the extras you need like a blaster for the STB if you use one, etc (some Hauppages are build for the proprietary sucky WinTV and wont work with Vista). Until we know more, this is kind of in the air.

Also, don't forget about internet connectivity for the EPG and other networking needs. Do you plan on being wireless? If so, that will likely be an additional possible expense and/or consideration.
 
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