Media Drive/ Entertainment Center

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Can anyone recommend a good media drive? I've been slowly filling up my hard drives with music, photos and movies and now I want to share them.
I currently live in a shared house and I'm looking for something that will not only allow me to play them on my TV (HDMI preferred) but share them with my housemates.

It's got to be able to play 720p+ movies, possibly mkv's

I was looking at getting the WD HD TV, connecting to a 1TB disk with Ethernet for sharing.

I also saw a Popcorn hour media drive- but it looks pretty expensive (£190+ without a HD).

Has anyone had any experience in this area? Got a similar setup at home? I'm looking for something to spend my money on!

 

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I got a WDTV for the mother and I can't really fault it. Plays everything and is easy to navigate, I tried a 1080p 19GB bluray rip and that had no problems with playback

Only drawback is the inerface isn't super pretty but if you want that you'll have to ante up for media center PC.

 

Why not use something like Windows Home Server or if you have a console one of the Media sharing apps (Tversity for the PS3 or XMBC for the XBox), these are apps that run on a pc and utilise the console as a media portal.