I made my lame attempt at finalizing my media PC tonight. When I say media pc, I mean that I took a 4 year old PC, put an ATI Radeon 9550 video card in and bought a logitech wireless keyboard and mouse and connected it to the DVI input on my TV. I'm really just going to use it as an Itunes jukebox, internet browser and file server for my laptop.
Video: I'm a little dissappointed in the display through my TV, but it will do. Really, it looks like crap compared to what I expected, but I will play around a bit and see what I can do.
Audio: The difference between the SPDIF output on the soundcard using Itunes (Apple Lossless files) and my CD player is indistiguishable compared to using the DAC in the H/K receiver . If I run the SPDIF through the external DAC it doesn't sound as "Big" as the output from the CD player. I'm pretty happy with audio overall considering what I put into it and what I was looking for.
Keyboard and mouse: HELP!!! I have to be 4 feet from the transmitter to get either to work and that is WAY too close to the TV to make it usefull. What do I need to look for to find a keyboard and mouse that will work 10 - 15 feet from the transmitter?