Actually more equivalent to XP Pro, at least the version 2005 I Have. As you get Remote Desktop and IIS with it. Yes, it does everyhing normal XP does, and can use the same drivers etc, although there are some optimised ones available. They say it has a few optimisatios under the hood for htpc use, but you would not know, and I am not entirely sure if thats true. You do get an extra application with it, just called Media Center, which does the HTPC stuff. I dont hink there is a better HTPC solution available anywhere for only the TV and PVR features, but that's my opinion. You should also check hardware requirements. It only works with certain TV cards, and requires a DX9 video card. Although I think that covers it.