Welp,

No one replied to this post here or really anywhere else except to recommend the Phillips divx player. I was a bit concerned that the Phillips wouldn't give me the audio I'd be wanting so here is what I've done.

In the above mentioned htpc I've removed the wintv card and installed it on another pc in the bedroom along with the btv software. Installed btv link on the htpc in the living room.

So my htpc in the living room is a very advanced dvd player. With
Audio: opt dig, 5.1 analog...Nvidia soundstorm onboard
Video: Svid, dvi, db15...Nvidia fx56 fanless..can be tweaked for hd output

Plays any format
Through btv link plays any recorded shows over the network.
With Firefly and girder:
Controls all av equipment including denon 2805 through the serial port.
Controls btv over the network
Plays anything on any networked drive
Lol it goes on and on..oh and I will be able to surf the web from my couch while listening to my new axioms when they arrive next week!

If anyone is interested:
http://www.snapstream.com/
http://www.promixis.com/products.php?section=girder

Leaf
PS I'll post some pics later if anyone is interested.