Would like input on a solid solution for the following use scenario.

I have a friend with an exercise room with a 47” LCD.

He’d like to be able to view cable TV, Movies access his music collection and stream music from Napster or Zune subscription services. Additionally, he’d like to be able to pull up a browser and surf the internet. Possibly read local online newspapers.

He’d like the GUI to be extremely easy to use and will be accessing from 15 feet. He has Comcast cable running to the TV today and he’s willing to put a small server in the room or near his computer in a nearby office to feed the LCD.

I’m thinking that the new HP Media Server E487 would provide an interesting solution. He could watch cable on a Comcast input and we could install a media extender to the LCD for the movies and audio streaming. That doesn’t solve access to the internet from the LCD.

Questions:
Has anyone tried to solve this use scenario with and HP Media Server or other?
Would MSFT Media Center with an extender be a good choice here?
How would someone access a browser and the internet remotely? Would this require another PCI type connection and separate input? Or, could this ride on the same connection ast the extender?
What's a good control option? Universal remote? Or, somthing like a gyro mouse?

Thanks