Freevo seems to work quite nicely. I've installed/used it on three 
different occasions, and at least one of those is working right now. 
(buddy wanted to turn his auld compaq into a pvr)
As far as hardware, I've been infatuated with the idea of a VIA EPIA 
solution ... Mini-itx is the form factor. They're typically fanless and 
can fit in tiny places (like a gutted ps2 or some very cool looking 
cases.)
Check directron.com or mini-itx.com for more information.
Upside? Most come with RCA video out and such niceties as optical audio 
out built into the board.
Downside? Only one PCI slot. Urf. That shoots the dual-head input right in 
the foot.
Wahoo, pvr!
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