As for #2 Thought, you're not going to get a decent HTPC for less than $899. The $12.95/month, I can't speak to.

As for #3 Question, the reason you can't record HDTV is you've got nothing to decode it from cable or satellite--2 way cable cards are not available at all yet, and will not be available for the home builder market. 1 way cable cards are available, but I don't know of an HTPC interface that will take one. Please correct me if I'm wrong...

I am the Doctor, and THIS... is my SPOON!