I have a system setup to do the same thing only it is not as fancy (mine is cheap):
Celeron 500 MHZ

256 RAM (pc100)
10/100-network card (built in)
Built in Video/Audio
10g HD
WINXP
No Slots for expansion (I Did say cheap)
TV 52 inch RCA
The trouble I have is that when I watch a movie the voice and picture do not sync.
This seems to occur when I watch a movie off my home network (Using a Switch). That accounts for about 100% of the movies I see (I store none in the small local HD). I tried playing with the setting in media player 9 but no luck. BTW How did you make that menu??