According to the Australian company D1, by "simply plugging the Home Media Centre into your loungeroom TV you can pause, rewind and fast forward live free to air and pay TV and have your favourite TV programs automatically recorded for you."

They appear to be selling a small PC pre-installed with, the open source software, MythTV. This software gives a PC the ability to behave much like a PVRs, with even more features than TiVo. The device has the ability to play DVD, VCD, MPEG and DivX movies and CD, MP3 and Ogg Vorbis music. Take a look at their page though, they do offer a number of other features. Although, I am not sure whether the $1300+ price tag is worth going for the open source software option.