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Assuming you already have a TV, this is what I'd do (well, what I have done)
PC in bedroom = £free (worth maybe £200? probably less)
Wireless router = £free with broadband
Xbox360 = £50
120gb HD (for the Xbox) = £50
Network adaptor = £35
Windows 7 candidate edition = £free, Preordered release version for £50
Wireless keyboard for PC = £30?
With that stuff, I can play whatever I want in two rooms (although WMC does take a while to connect on the 360).
And if you factor in the tuners and the 1tb HD in my PC (an extra £100 now, though I paid more) you get recorded TV, and Tivo style functionality.
I mean I might be wrong, but isn't that a better solution?