I decided to set up the Xbox in our bedroom. (And got the OK from my wife too.) I have configured it to automatically start up in Media Center Extender mode when the Xbox starts up. Since I want to access our Netflix streaming account from the Xbox, I created a Xbox Live Gold account for the Xbox, and associated my Netflix account to this Xbox account.
With this setup, I can access:
- Live and Recorded TV from the Media Center
- Netflix streaming content
- DVD content
- Content from the Zune Video marketplace
- Hulu, Youtube, and other internet streaming content through the PlayOn server running on the Media Center
Also, we will be able to play games on this Xbox. (Most likely only when my wife has her woman's group over)