Nick,

I have a HTPC that I'll be running in the theater that I'm just now finishing up. Part of my initial drive was to feed MP3s to my listening area, as well as the displaying of WMP/HD material on my projector. I keep a DVD player in the same rack for those ease of use applications and the playback of SACD/DVD-Audio.

I think that you'll get a mryiad of answers to your question about the benefits....including the superior scaling of normal DVDs, PVR functionality, gameplay, etc. Also, you might want to take a jaunt over to the AVS HTPC Forum. There is more discussion over there about HTPCs than you could ever want.

In the end, HTPCs require someone that enjoys tweaking and piddling around with computers. In my case, it helps when you see something like Unreal Tournament on an 80"X60" screen....or a website....same effect.