First off, I thought what simonizor thought also--don't provoke the wife, just fix it
We use a 7MC setup currently.
Started with a VMC setup using dual PVR-150 cards and an old Sempron system with an X800 outputting to a 27" SD TV. Eventually transitioned to an HD setup on a 26" HDTV.
The current setup is:
7MC on an AMD setup. Athlon X2 4450e (45W part), with a Radeon 4350 (passive cooling). In a decent looking case (NZXT Duet) that most guests don't even realize is a computer, there are 2 120mm fans undervolted at 5V providing cooling, it's inaudible from more than a foot or two away. Have the MS Media Center keyboard and remote, only need the keyboard when fiddling with things, which isn't too often. It goes straight to MC so the wife never sees Windows. It's hooked into the new 32" TV.
Use the Silicondust HDHomerun for tuning via the network. We only have Limited Basic from Comcast so it's fine for that. We get FOX, NBC, ABC, CBS, PBS, ION, WGN, CW all in HD. Plus a few sub-channels and a couple locals as well.
Also use a Windows Home Server, have a MyMovies subscription and have been ripping DVD's and CD's to it. Nice to browse the collection from the couch

Upstairs I have the old 26" wall mounted with a Linksys Media Extender, so we can watch TV or any of the movies off the server through it as well.
One beautiful perk of the decentralized setup is when something goes down you can keep things running pretty easy. Motherboard took a crap until I replaced the capacitors and I was able to swap the laptop in for a weekend with no one the wiser basically. For those who use pay cable if Silicondust ever releases their Cablecard setup it should be the shizzle.
There are other PC DVR solutions as well of course, Mythtv, GB-pvr, XBMC, Sagetv, etc. It definitely offers the freedom to do more, but someone has to maintain and keep it working. And it won't be your wife. So really, it's up to you

Good luck with whatever you choose
