well I didn't link to the shuttle with the thought that it was the be all end all solution, it's just that considering the media center origin of the thread, and the beleif early on that the mac mini was a living-room orientted machine, I thought I'd post a media center micro PC.
micro mac... micro PC... I was trying not to stray too far.
anyway, yeah it's not cheap, one could probably do a more economical job getting a bare case and building it @ home, or just as you said, one of those crazy multiformat DVD players.
"The bigger question becomes what you want to do with the PC while its plugged into the TV set."
well personally I just lie in my bed with my Gyration wireless kb/mouse and surf the net, watch anime, etc... basically anything that doesn't require a LOT of attention a the helm... if I wanna *use* the computer (ie: multitask) I use the desktop, if I wanna *relax* at the computer I use the bed and TV.
I dont use the TV to multi task on the PC since, well, you dont really have a lot of room to work with in 800x600, while I set my monitor resoltuion to 1280x1024.
with that said, I wish I had a bigger TV with better definition, 800x600 with small fonts is readable even on this old Hitachi, but it could be better. and the TV out on my old all in wonder is hurtin'. it sucks