HandBrake

I found HandBrake a month or so ago when I bought a Mac for my wife. I love the fact that it creates h.264 files w/multichannel AC-3 audio that play (usually) on my XBox with XBMC. Problem is, the XBox hardware is just barely adequate to decode these streams. Most of the time, video is smooth, but complex scenes can cause some stuttering.

So I'm looking for a replacement for my XBox. I want to know if anyone knows of any good set-top boxes that have the juice to decode high bitrate, high def h.264 files. And I'm not looking to spend upwards of $600 for a Mac Mini or an MCE HTPC. More like $200-$300 tops. Any ideas?[/i]

Sounds like the soon-to-be-released Apple TV is exactly what you're looking for.

Rodney

Thanks for the reply. I also found something called the Sling Catcher from Sling Media, coming in mid-2007. Here's a piece from Arstechnica, if anyone is interested. Looks pretty compelling.
http://arstechnica.com/news.ars/post/20070108-8569.html

Has anyone tried a decent external soundcard to go with a laptop with which I can play my Handbrake created files through a digital output (TOSLINK) cable to my 5.1 Receiver?

Turtle Beach has some interesting USB key size soundcards and a couple that are the size of a pager that either allow Dobly or DTS passthrough and/or decode 5.1 sound. Anybody tried these?

Thanks!