I've got 2 WDTV live boxes. The interface isn't as fancy as some of the other ones out there, but it's dead simple and has played everything I've thrown at it. It will hook to your network or accept files via one of the 2 USB ports. Pictures, video, music.
Costco has them from time to time for ~$80 and I've seen them on sale at Tiger Direct for even less.
They have a new model that has built in wifi so if you don't want to run a hard line, it will connect and stream HD content via wireless N. It also works with netflix, hulu, youtube and a handful of other web media sites.
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