I originally setup a MythTV box and compared to my buddies Media Center box, to be honest it really sucked (the MythTV setup). I was hoping for it not too, I really was, as I didn't want to shell out the dough for Media Center, but... I just finished our Media Center PC about two months ago. My wife loves it. Have it networked to my other 3 workstations for music, videos, pictures, etc. plus all the pvr etc.. Have it hooked up to my 34" flat screen via DVI. EVERYTHING works perfectly via the Media Center Remote, plus the added bonus of a computer on the TV... Battle Fronts II looks awesome.
My daughter gets the most enjoyment out of it though, as I record the entire "Peep and the Big Wide World" "Little Einsteins" and "Sesame Streets" series.....
We are being spoiled though, as we never really watch TV "real time" anymore and it sucks when your over somebody's house and can't skip FF, etc...
Glad you like the 360 setup Claus, can't wait to do it myself.