Best HTPC setup

Let me know how well your set up works with h.264 -- I've heard that the maximum theoretical throughput can be pretty high requiring lots of CPU and GPU.

Also, am I correct in assuming the overall capture process is not too resource intensive? So, i can use some relatively inexpensive components for my backend server, and just need the juice on the media extender (or more likely just buy a premade one like the xbox or netgear)...