I haven’t bugged you guys for awhile, so it’s time I marshaled the combined brain power here and got some sagacious advice!

Here’s the setup:
-2nd floor office - I have a PC, iMac and printer on the connected to a wireless router.

-1st floor (great room, very open floor plan)- a Denon 1908, 2 bookshelf speakers/1 center, DVD, Satellite receiver and 42” plasma.

-Basement HT – Denon 3808, Sat DVR, DVD, 58” plasma, Wii, 5.1 speakers

Also:
- The Wii can “see” the wireless network.
- I bought a set of powerline Ethernet adapters (Linksys PLK200) to use that as a (more stable/efficient) hardwired network connection to the basement. I added a network switch to the basement adapter so I can plug in several things. (BTW – when I finished the basement, I knew I was going to do X-10 lighting, so I installed a phase coupler on the electric box to prevent any problems with reliability for the lights. This should also prevent the majority of the problems I have seen regarding the powerline adapters).

- The 3808 has a network connection, but it is hardwire capable, not wireless. Since I had to spend money to get a wireless access point to the basement for the 3808 and work it into the HT, it makes sense to do the powerline thing. I understand there is a conversation that could be had relative to wireless vs. hardwired network, but I have decided to take this approach.

Whew, with all of the above in mind, here is my dilemma. As time goes on, more stuff will be networkable and plug into a home theater. I want to future proof the system somewhat.

I want to store & play in the HT system my music collection, video from the HDD, my pictures, DVDs. Internet surfing on a 58” plasma would be nice as well. I am techno-challenged such that I don’t know all of the solutions. I do like simple and cost effective, but in the context that the solution delivers.
What I have considered and eliminated Sonos, Squeezebox and Slingbox as limited and/or expensive

I think I have boiled the solution down to either a HTPC or a PS3. The PS3 has the edge because 1) it does everything I want to do, 2) it is a killer BluRay player and 3) and I can use a Bluetooth keyboard/mouse to surf the net. (The HTPC would require that I buy a standalone BluRay player)

Some questions about the PS3:
1) Does it make more sense to plug in an external drive or replace the internal HDD?

2) If I do plug in an external drive, will the PS3 see both and let me use them? Where do I store my music, pics, video, DVDs?

3) I need to format any drive used with the PS3 in FAT 32 and there is something I have been seeing about a 4GB file size limit. What does that mean? Can I store/play a 4.7GB VDVD

I’d really appreciate answers to the questions and most certainly other thoughts based on what I am trying to accomplish.

Ray