Been playing with it for a day or so, now. On the TV unit (a Dell P4 2.66GHz with 2GB RAM, 512MB video with S-Video output, 160GB IDE hard drive,) it installed in right around 20 minutes. It happily output at 800x600, which made everything easy to see, but not a single app would launch, giving me the error that my resolution was too low (including IE, which launched happily on the Desktop.) I changed to 1024x768 to try a few things only to discover afterward that I cannot reduce back to 800x600.
Firefox 10 runs great, including with Flash. I have been unable, however, to get Flash to work at all in IE. Dell's OEM PowerDVD crashes when launched specifically, though its DVD decoder appears to work in Windows Media Center, which launches even when requesting the DVD be played with PowerDVD. The requirement to use WMC may be due to PowerDVD crashing, though I am not convinced of that. Windows Explorer sees my Sony Ericsson C905a connected to the network via wireless, and sees its music, video, and photo content just fine, though Windows Media Center refuses to play ACC-encoded M4A files. Boot time is rather fast, bringing up the Start screen within 30 seconds from a cold boot. As a whole the system is rather peppy and responsive, surprising given the age of the hardware. Some videos which were jumpy on the same hardware under Windows 7 run very smoothly with no jitter. I've attempted to add a few different network library sources (photos, music, videos) to see how the apps work with them, but I frankly lost interest in doing so as time has gone on. I might dink around with those later.
I also installed the x64 edition under VirtualBox on a quad-core 2.66GHz machine with 8GB RAM hosted by Windows XP x64. 2GB allocated to RAM, 128MB given to the video with 3D acceleration turned on. Again, performance is surprisingly satisfactory. Boot up is fast, when it boots: I actually have not been able to get it started since the last shut-down as it attempts each time to perform a repair. I suspect this might be a problem since I installed anti-virus in this guest, though it's worked fine numerous times since installation.
I suppose my fault in the media PC is that I don't have an HD TV. I can see it working much better on such a setup. Things would be readable, at least. The interface looked very good at 800x600, and the requirement to run 1024x768 or better seems like an arbitrary requirement as the apps could easily be coded to render more friendly at the lower resolution. But, I'm fighting against progress, here. I'm surprised at the performance on such old hardware. Windows 7 runs pretty well on the same machine, and I expected that the latest-and-greatest would put much more strain on it. Microsoft definitely seems to have learned from the Vista fiasco.
While working with the troublesome x64 virtualized installation I've had the chance to work with some of the troubleshooting options on the installation media (similar to Windows 7.) Very clean, concise, and easy to navigate. While it offers simple options for some advanced fixes, I would like to see wording which is a little more description of what each option does, or at least a pop-up which does so. You can restore from a previous image, refresh the installation, and so on. The repair also offers advanced options for the advanced used, including a command prompt with the standard set of troubleshooting and configuration commands. Alas, as I write this I have been unsuccessful in salvaging this installation. I will play a little with disabling the anti-virus drivers to see if that helps as so far even restoring back to a previous point at which Windows booted properly has failed.
That's all I have for now. In short, pleasantly surprised at performance, and while I do not particularly care for the interface for productivity purposes on a desktop, I can see where as a media or portable PC it has its place.