"To summarize, WMCE currently has more features than TiVo, though TiVo is catching up. WMCE requires a large cost up front, but no monthly fee, while TiVo is a lower (or no) cost up front (for basic models) but has a monthly service fee. MCPCs can also be used as home computers. Finally, TiVo is much easier to install. So based on this, if you need a home computer anyway, you might as well get an MCPC, that is, if you can put it near your entertainment center (else you need a Media Center Extender, which is about the price of a TiVo). If you have cash to spend up front, an MCPC is probably a better value. But if you are looking for something that is initially inexpensive and easy to set up, TiVo would be best for you."
Digital501 has a nice comparison of the pros and cons of TiVo versus WMC. I agree with the article. If you are technically savvy and have the cash, an MCE box is probably the way to go. On the other hand, I would never recommend that option for my parents as it is a little too much work for them to keep something like that running. I'd like to suggest a third option that is the best of both worlds, a non-TiVo type DVR. I've got a Panasonic DVR with a DVD burner that was easy to set up and use plus has no monthly fees.
I've already got a Tivo (left it at my parents' house, since I have the Time Warner HD DVR here), but I'm thinking of switching to the Humax Tivo w/ DVD recorder, and using an Over The Air antenna for my HD viewing. Time Warner's digital signal quality sucks, and my monthly cable bills are exhorbitant ($125 w/ RoadRunner internet).
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I'm currently running SageTV 4 and love it. I am concerned about the onset of new Vista DRM schemas that could render my set up useless. But the product is great.
Heck, even my girlfriend likes it. She's asked me to build her on on several occasions. And she's not tech savvy.
I think digital501 oversimplifies the comparison. I'm firmly planted in the MCE camp, with a nod to SageTV and Beyond TV as great alternatives. I would never expect my parents to have a media center of any kind because setup and maintenance is a PITA. Sure Tivo has fewer features, but the features it does have work for the average consumer. Media Center still requires a convoluted setup process. You still have to think about codecs and networking and all the things that complicate media management on a PC. With Tivo you get a smaller set of functions that just work.
Case in point: I gave a Tivo to my mother. She loves it. Within a day she was giving my older brother a "tutorial" on how to use it. Can't beat that with a stick.