Yeah there are ISO's out there for the PS3 to put Linux on 'em. I know of a mate in the US that got 6 or else 7 of them, linux'd 'em, and used it as another computational device for a Distributed Computing project.. He's nuts that way, he's just sold most of 'em on.

Oh and you can still switch it back to "PS3" mode so you can still use it as a games machine, only thing is since no keyboard on the PS3 it makes it a bit hard to do some stuff, there are ways around this, never tinkered myself - not got the cash for it.

Hmm yeah a dell running linux probably better idea as they they do have really quiet systems, and since it's all video decoding most of which should be able to be handled by a modern graphics GPU with the right software the processer load is light and thus would defo reduce fan noise.

Hmm PC with 5.1 & HDD decoder / TV tuner + Belkin KVM extender + logitech cordless set up would be nice ..

Well that and you could watch TV while surfing the web almost...

Then again maybe not seem to remember a really DIRE Dell Window XP Media Edition box..

I'm sure there are forums out there for this...

Dont go for vm whatever you do. The HD isnt true HD and as most taps are over subscribed you will get a crappy picture for your money.