Also, I forgot to mention there is another way to do conversion, if you have a windows home server I believe now it has ability to convert recorded TV shows from a media center computer. I am not sure how this works, since I do not own one. I hear that the HP mediasmart WHS are really good though.
As an aside I would consider buying windows home server if it had a media center backend built into it, so all my recordings and shows would be stored on it, and I could view them on any media center extender. Also it would be nice if windows7 could act as a media center extender.
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