Here is my current media center setup:
- 47″ Vizio LCD TV
- Apple Mac Mini (Early 2009 Model) running OS X 10.8.2
- 120GB HDD
- 250GB External HDD
- Apple TV
Both the Mac Mini and the Apple TV are hooked up to the TV via HDMI. Movies/music are ripped from DVDs/CDs and stored on the Mac Mini in MP4 format, then added to iTunes with Computer Sharing.
The Apple TV points to the Mac Mini iTunes collection.
Life is good.