I got asked this question by PM:

"I've got a couple questions for you about the Media Center PC. First, where did you get a hold of Windows MCE? I was even a MSDN Universal subscriber last year and I didn't get it. Second, what hardware is required? I've got a free 1.0ghz P3, but I also have a K7 board I could put components into. Any info would be great! Thanks."

Firstly HERE is the Microsoft FAQ for Windows MCE.

Windows XP MCE 2002 is currently available to MSDN subscribers as a 2 CD download, and is available (although probably not legitamately) on the P2P networks. Windows XP SP2 will upgrade this version to what is being called "Windows MCE 2004".

The basic recommended hardware is a standard PC with a DX9 capable video card, and a TV capture card with hardware encoding (WinTV PVR-250 is perfect). From all that I have read, any Athlon XP or P4 system should do the job.