I've attempted to give as much detail to my requirements as possible, so I'll keep this short and update with questions to further answers.
I currently have a few devices that do different tasks and I want to integrate. I have a Win 7 PC for normal computing/work/gaming, I have a old (slow) XP PC for torrent/AV decoding/web-server. I also have a Netgear ReadyNAS DUO (1TB) for document storage/media streaming (when its working)/backups. Finally, I have an Xbox 360 (old, noisy, dying) for gaming/media from NAS/Netflix. I would really like to simplify my 'system' to some degree and allow for expansion in the future.
FUNCTION: I want a PC that will play mediafrom my NAS, Netflix, and Blu-ray. I would like it to torrent (I know...). I would like to be able to use it as a DVR (eventually, NOT NEEDED AS OF NOW).
PRIORITY:Quite, Ease, Expansion
I will NOT use Linux (nothing personal, just need 'intuitive' nature for family); I have Win 7 Pro (WMC included).
I understand the Xbox ~ WMC integration, my xbox is LOUD and dying (2 RROD/wk; I know how to fix it, my wife does not).
I have a Logitech Harmony Xbox 360 Remote; can this work with my setup.
I would like Digital Audio.
I may consider Blu-ray (streaming v physical media argument??)