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Digital jukebox ( Media Monkey)
Playing Web based Content (Firefox)
Digital Slideshow used with Digital Jukebox and Media Monkey Visualizations ( Slideshow.exe - We work out to this)
OTA DVR (built into Windows Vista Home Premium)
Play Blu-Ray and regular old DVDs
The HTPC is pretty much a standalone PC, its networked to get access to internet, file transfer, backup, administration and use of other network connected devices (printer) easy.
We are not planning on do much with streaming music or video from this system to the rest of the house.
I may try and connect a pair of speakers in the living room or dining room to play music; however, I probably would hard wire them or use some sort of wireless connection.