I've been having a hard time find good articles that Matt hasn't already found and posted but I think this one is worth your time. CNet has an article on hacking gaming consoles so that they can act like a DVR. It also touches upon Sony's PSX game console/DVR/DVD-RW platform.
Phil seldom bothers with his entertainment center anymore when he wants to watch a movie or enjoy part of his digital music collection. Instead, the Utah-based software engineer switches on his Microsoft game machine and fires up the Xbox Media Center, an unauthorized piece of software that he helped write and that allows a modified console to play most popular digital movie and audio formats.
"It's a convenience thing," said Phil, whose hacking hobbies discourage him from divulging his full name. "All of my movies are organized into categories, and it's very easy to navigate through the menus to find exactly what I want to watch. I have a PC in the basement of my house which stores all of my music and movies, and the Xbox makes it extremely convenient to use them."
Next year will offer us so many more choices for products and services, it will be be increasingly hard for consumers to decide what to purchase. A gaming console with DVR functionality? A DVR with DVD writing? A computer with a TV card and media controlling software? We will be inundated with options and hopefully we can share our experiences here to separate the wheat from the chaff.
UPDATE: Be sure to check out the video on the CNET article of the "law student" Steven (funny, eh ;) who shows us how he modded his Xbox.