If you want a true living room experience:
1. Get Windows 8 and an SSD harddrive for some amazing boot times.
2. Install XBMC (Xbox Media Center)
3. Install XBMC Launcher (
http://forum.xbmc.org/showthread.php?tid=136798) so you can boot directly into XBMC, instead of the Windows Shell.
4. Install Advanced Launcher (
http://forum.xbmc.org/showthread.php?tid=85724) so you can launch directly into any Windows application (batch files included) directly from XBMC. You can have it launch directly into Netflix, Hulu, Console Emulators, Steam Big Picture Mode, etc.
5. Purchase a XBMC compatible remote control, like this for example:
http://www.amazon.com/dp/B00224ZDFY/?tag=neogaf0e-20 and download EventGhost (
http://www.eventghost.org) and then you can set any remote control input to output as a keyboard key. You make it so that a single remote button press will execute a batch file, which makes its possibilities basically endless. For example, maybe have a button that terminates XBMC and starts up Explorer.exe so you can use it as a computer once again. And on the flip side, a button that kills explorer.exe and starts up XBMC.exe.
6. Install Plex Media Server so you can use MyPlex to view your locally stored media from anywhere.