Do I need a server or pc

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I think it is a bit more complicated than all that. It depends what kind of TV you have (like if its network ready) if not do you have like a game console or some other method (eg a PC with HDMI nearby) to feed the media to the TV?

One thing I think if you are looking for a cheaper solution than a dedicated PC is to get the cheaper network bays (like 4 slots) which lets you hold an array of hard disks. This would go back to if your TV is network ready though.

If you happen to get an actual server/pc one program I use quite frequently for my PS3/Xbox is the ps3mediacenter. It is open source and free which is nice, its a decent media server for streaming movies/music.