The pc comes with XP home OS, it has pre-installed Power Cinema software which is essentially the same as windows media software, the advantage of the Pow Cinema is that the remote is wireless, as in it does not require line of sight as does an infra-red remote, this is very handy as you do not need a visual line to the pc to control the tv/video playback etc.
I have my sky dish hooked up to the pc and it gets all the free to air channels and I use the pc to tape these channels, no problems
Would recommend this pc and advise for any purchaser to also buy the external hard drive also.