I am building a system around the Dell Zino. I have bought the Zino and it is a great little box. Very quiet!!! I got the Windows 7 option and I loaded it with Ubuntu in a dual boot setup. I had to upgrade my stereo to handle HDMI so that should be counted in the cost. I ordered the Onkyo HT-RC160 for a cool $300. I haven't figured out the question of boxee versus xbmc.
Re. ripping DVD's in Linux: Use Thoggen for a GUI program. It rips it into a non-propietary format (Ogg video). You can convert it to other formats but for the most part you won't need to.
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