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[GHammer]

Is this the hardware based device that Jim wanted to build?

http://www.popcornhour.com/onlinestore/index.php?pluginoption=productspec&item_id=12

[benn600]

These devices have been out for a while.  A friend uses it on his boat to watch movies from a media drive or server or something.  He said they're definitely not perfect but reasonably nice.

[jmone]

The next gen version has been announced http://www.slashgear.com/popcornhour-c200-media-streamer-blu-ray-bittorrent-ready-video-1747213/ and supports a wide array of codecs and even Blu-ray with option drive (which cost little these days).  Prior to building a HTPC, I seriously looked at these CE Devices but due to their (then) limited codec support when with the flexibility (and cost and complexity) of an HTPC.  For most people these things will bring acceptable performace and lounge room access to you media library.