Thanks for confirming, this seems to be exactly what I would like my new setup to be able to do. Based on what you've done, I've put together the following spec:
Antec Fusion Black HTPC Case 430HE Watt PSU £118
Intel Core 2 Duo E4500 S775 2.2GHz 800FSB £75
Hitachi Deskstar P7K500 250GB S300 £42
Gigabyte S775 nForce 630I MATX DDR2 Audio Lan £50
Basic DVD Writer £20
2x MDT 1024MB DDR2-800 CL5 M924-800-16 £38
Hauppauge WinTV Nova-T 500 Dual digital DVB-T PCI TV Tuner card (inc remote) £50
TOTAL £393
I just need to save up for it now

I already have the s/w, but is there anything else essential needed? I expect a half decent CPU cooler will be needed but am not sure if I've forgotten anything.