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I have several items of mainly Sony Hi-Fi equipment and some useful speakers, all with lots more life in it (but it's largely disconnected since we downsized).

I've also (working in my lounge) a 28" regular, old fashioned, TV connected to a "top of the range" terrestrial aerial; which gives me excellent Freeview reception and all the terrestrial stuff - as well as SKY through a regular SKY dish and box.

Other TVs are also available and connected. I also acquired an installed, currently spare, Sky dish when I bought the house.

My whole property (main building and garden office) has recently been networked using Zyxel mains 'HomeNetworking' adaptors and I can thus 'see' three computers and the Internet, on-demand, anytime, wherever I choose to sit and work.

My present central objective is simple enough - to replace the large TV in the lounge with a 'hidden' PC controlling all my music, radio, TV and photo storage media needs; driving all output through a replacement 28"-32" flatscreen display capable of showing HD programming.

I'm inclined towards buying a LOW COST, 'powerful', off-the-shelf PC with at least 500GB of storage attached or imbedded, as good a sound card as I can afford, connected to my 'home network' and with whatever Hauppauge devices I need to receive any 'off-air' and 'off-dish' signals I can find - and all that through software (but preferably NOT Windows Media Center).

I'd like to do that using 'regular and safe' PC applications and kit that I can install and set up myself and at THE LOWEST COST I CAN ACHIEVE. I'm not at all averse to buying on eBay.

Ideally I'd like to spend between £300 - £400 on the kit and do all the work myself. That way I'll spend less than a new TV with built in Hard Drive and Freeview, FreeSat - and I suspect I'll get a lot more functionality.

I recognise that it's a bit of a tall order but it'll be a great project to keep me active until Christmas and I'm hoping to produce a useable (even marketable) e-book on the subject when I'm through.

Would anyone care to offer me any advice or experience that might start me off ... please ?
it sounds like GB-PVR can do most (or all) of that, as long as you get the right hardware, and about the hardware, I am not really sure what you would need, since you're in the UK, but someone from across the pond probably could tell you what capture devices you need.

the rest of it (photo, video on your PC, playing back music through a stereo system) is all supported out of the box by GB-PVR, with various plugins that can add more functionality (music library 2, etc.)
I've been using GBPVR for a few years now, but recently things have expanded - see how they fit your needs.....

New LG Full HD 37" screen (currys auctions). Popcornhour HD media extender - small box sat under the TV connected to network. Misc other TV's running Hauppague MVP's for SD.
PC sitting in the shack as GBPVR server - P4 3.2 with lots of disk.

Tuners in it - pair of nova-t-500 dual Freeview. PVR150 to grab and record output from Sky box and change its channels. Experimental Compro DVB-T Satellite tuner for BBC and ITV HD works well.

For me, the MVPs and PCH box under the TV's are a better and cheaper solution to PC's. MVPs may be appearing more on ebay as HD PCH's replace them.

I have to say GBPVR has changed the way we watch TV now. Very rarely do we watch live TV.
be careful buying a ready made pc as you may not get many extra pci /pci-x slots for expansion
the built in sound on the new motherboards is pretty close to any sound card now