I just bought an XBOX 360 and the idea of streaming video from my PC to the 360 is quite interesting...is media center a dumbed down version of XP or does it have the same capabilities as XP?
Media Center Edition is XP Professional NOT XP Home. It's just XP Pro with the MCE application embedded in it. So if you want a cheap copy of Pro, just get MCE. You don't even "have" to use the MCE app, it doesn't come on at startup unless you set it up to do so.
It's Pro except that you can only join a domain during setup (breaking extenders), and there is no credman. Otherwise, it is idential, you can do EFS, IIS, regular file permissions, etc.
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