Try an Revo R3600 (~ £150 GBP) and XBMC live. The Revo is excellent, very very quite (much quieter than my sky+ PVR), about the size of an original apple tv, has HDMI and VGA output AND comes with a VESA stand that that you can use to hang it directly on the back of your TV (unless it's wall mounted). XMBC live installs very easily and quickly, once you've found a usb cd/dvdrom to boot it from :) The only other thing I needed was a remote / usb receiver but I just bought the cheapest windows media centre one I could find. HTH