Well, Windows XP Pro gives you ability to run IIS without hacking it. Windows XP Media Edition is the same as Pro but it gives you features for setting up a HTPC. I have found this to be very useful as an entertainment center especially for saving TV Shows. I never miss my favorite shows now since they are all saved to hard disk when I am not home. If you don't care for those features, XP Home version could be fine for you. OEM price difference between Home version and Pro/MC version is only about $40 anyways.
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