Linux HTPC

First post, please bear with me. I have searched this forum, and many others to find many possible solutions but nothing addressing my specific questions.

I just put together my first attempt at a HTPC. It has an Intel i3 550, ASUS P7H55-M PRO mobo, 4GB of PC800 DDR3 RAM (cheap), and a LiteOn BluRay drive. It is in a mATX case with included 300W PSU. I am currently running Win7 Pro to trial this setup with WMC.

My question is if anyone would recommend a Linux distro that I can use instead of buying a license for another copy of Win7? I know a (very little) bit about Linux from trials with dual booting Ubuntu but my wife knows nothing about the OS. We will be using the system for Netflix, DVDs, BluRay, Pandora, and a little web surfing. No gaming so I plan to use the native graphics. It would be nice to have a system that could load a media center on startup, have wifi remote control possibilities (we both have android based smartphones), and will work well with Windows as I do have the computer on the same home network with my desktop and laptop.

In summary: Is there a Linux distro with media software that I can teach my wife how to use the HTPC easily?
Will this system be easy enough for a noob to install and configure to work with the hardware above and my home network?

Well there is really only one good choice (and it is awesome!) XBMC
You can use it with any distrobution, or use their preconfigured distrobution
http://xbmc.org/
http://wiki.xbmc.org/?title=XBMC_Live
Yes it is easy to configure
Yes your wife will love it
Has almost all the features you want.

Though I believe netflix does not have a linux client. If this is a killer feature stick with windows.
Bluray works in linux, though it is a bit of a hassle. Most discs simply will not work without decrypting first (can be done on the fly with software like makemkv).

Thanks, I will look into XMBC. If it does work with all distros I will get my laptop back to a dual boot with Ubuntu and play around with it.
Netflix isn't a break point but some sort of online streaming media is a necessity. It could be Hulu Plus or any Netflix-like service. I have a two-year-old daughter and I hate the thought of purchasing every cartoon she watches on DVD.

One work around (rather than learning how to run a virtual machine then teaching my wife - I appreciate your honesty) would be to capture Netflix episodes on my Win7 machine, transcode to a Linux format, then stream from a network drive to the HDPC? Any thoughts on how complex this would be?

Honestly I don't netflix myself, so I couldn't comment. If you have a current dualboot linux system, there's no advantage to XBMC's own distribution - Its basically Ubuntu with parts hacked out to make it smaller, and it default boots to the XBMC program - all possible with any existing linux install.

XBMC has a fairly good plugin system that allows for additional features over the base system, perhaps there is one that allows for streaming from an acceptable source?

There are other packages that also allow for HTPC features based in the linux world, one other that seems worth looking at is MythTV - Also available for Ubuntu. Its designed to be more of a DVR system, but does have playback of user created media. There are some others that you may want to look at their features and compare, but ESP for the andriod feature, XBMC is my personal pick.

Hulu will work as it is just flash based, but as I said there is no netflix linux client. So netflix will not work.

also xbmc can be configured with mythtv as a backend.
Your remote will work perfectly with xbmc.

element

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It's hard to believe nobody here has heard of or tried it. I used it in place of ubuntu for some time when first using Linux because it had the capabilities I wanted buit-in!

Aso, FYI and AFAIK, one cannot use netflix with Linux outside of a virtual install, which complicates things too much for a n00B, IMHO!

Try it before knocking it!

Technically, you'll still need that new copy of windows.

I do have a PS3 that I run Nexflix on in another room. But I built the HDTV to replace the PS3 so I could move it to another room in the first place. I have looked into Element and will try it out. Sadly, though, with the issues with BluRay and no Netflix I may just break down and buy another key for Win7.

Another strike for netflix on linux currently. From wikipedia:

In a TechRepublic interview in August 2010, Netflix's VP of Corporate Communications stated that available Silverlight plugins for Linux, such as Moonlight, do not support the PlayReady DRM system that Netflix requires for playback.