I have a Lenovo IdeaCentre mini pc that we use for an HTPC. It is a tiny thing.
I picked up a nice inexpensive remote mouse and full keyboard and it seems to work well.
For those few times when we need an external drive, I also picked up a lightscribe dvd burner for I think under $40.
The only limiting factor is HDMI only out for the video, but since we use it as a HTPC with an Optoma HD20 projector, this is fine.
It runs Windows 7 Home deluxe or whatever they call it.

We use the projector about 3 times a week, and only for extended times of 3 hrs plus to save on wear and tear cycling of the bulb.

Otherwise, all is paralleled to a standard definition TV, which works just fine.

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85' 300D No inspection, No registration fees, Cheap insurance
"If my calculations are correct, when this baby hits 88 miles per hour, you're going to see some serious %$&^."