Open source programming and software has really made a lot of changes in the way we look at downloadable products. It’s now possible to find complete operating systems, full scale games, and top of the line media playback and management software for absolutely no cost to the user.
Update: There is another easy way to install XBMC in 15 minutes with OpenELEC.
XBMC, or Xbox Media Center, is one of these products that has become extremely popular since it was released. Originally, this media player was made for the Xbox game console, but nowadays it is available for the Windows, Mac OSX, Linux operating systems, Apple TV and even iPad/iPhone.
One of the huge benefits that comes with using the Xbox Media Center is that the full screen interface makes it ideal for a home theater PC or home theater system. This XBMC setup guide will focus on the version that was put out for Linux, as it is highly cost efficient solution together with a barebone HTPC that comes with out an operating system.
In fact, the reason for this guide is that I just got an Asrock Intel Dual Core Atom ION330 as my second HTPC and installed the XBMC Dharma 10.1 Live Linux on it’s hard drive.
The NVIDIA ION based or AMD Zacate based media center can easily be used in the living room for all types of media playback, whether it is for 1080p HD movies, music, or TV shows. The XBMC features a full screen interface that feels much more natural and organic to users, as opposed to other versions of software that really feel like they are an extension of the PC. The Xbox media center feels like it belongs with a home theater.
You can compare the latest nettop PCs with our Selector tool.
A lot of people don’t see the point in using a third party media application when the built in media capabilities of the PC already play music and videos. The reason that you might want to get the extra application is both for ease of use and superior playback.
The interface makes a huge difference in the way you view your media center, so by getting a downloadable open source media player you are giving yourself more control over what you are able to watch and how you are able to watch it.
Second of all, media centers like the XBMC are able to support different video and audio codecs, so no matter where your media source is, you should be able to watch or listen to it without a problem. To really experience it in all its glory, you only need a PC, a decent graphics adapter, a television that is able to connect with the PC, and a sound card that feeds to a set of external speakers.
Windows comes with a media player by default, which is great for beginners. For anybody who needs a media player that supports different formats or codecs though, you are going to need a little something extra. If you don’t know what a codec is, then chances are you will never need to make use of the XBMC.
If you demand the best performance from all your video and audio formats though, you are going to need something that tops the Windows Media Center, and one of the best products out there right now is the XBMC Media Center. It is completely open source, so you don’t need to spend a dime to get it.
So, if I got you convinced that Dharma Live Linux is the way to go, continue reading, as I will guide you step by step how to get started.
1. Get a barebone HTPC
Some good alternatives are can be found from our custom home theater PC comparison page.
2. Get a keyboard, mouse (and optionally remote control)
As I wanted to get a cheap second HTPC, I purchased a Microsoft Arc Keyboard as it is cheap, stylish and practical. For other alternatives, check out this keyboard comparison guide.
3. Download XBMC Live Linux
You need to download the latest version of XBMC media center.
4. Burn the ISO image to a CD/DVD
There are many DVD burning software that allows you to burn an ISO image to a DVD, so I do not cover all the options here. However, if your computer does not have an optical drive, you can install the live Linux on an USB stick.
5. Install XBMC to a barebone computer
When you boot your computer and insert the live Linux CD/DVD, the installer will prompt you a question whether you want to test drive the media center or install it to your computer. Just hit install and follow the instructions.
6. Configure your media center (including the master volume)
Once you have installed the media center, there are few settings that you need to configure. First off, I noticed that the system volume was very low, so I needed to adjust the master volume with the alsamixer. Just press the CTRL + ALT + F1 to login to the terminal. Then type sudo alsamixer to adjust the master volume.
Other settings, you should check are the location for the weather information, visualization for the music and to set up your favorite RSS news feed.
7. Select the skin to your liking (e.g. Aeon 65 and Night)
There are some really cool skins available for this media center. One of the nicest I tested were Aeon Nox and Night skins. 
Particularly Aeon skin has received a lot of positive feedback from its appearance. So, I installed the Aeon Nox skin and it looks absolutely stunning.
8. Setup the media library according to your needs
Now it is time to start organizing your media library. You can either transfer media files to the internal hard drive using the FTP connection or you can connect an external or network hard drive to stream media files. Check out this NAS storage guide to get an idea, which solution might be the best for you.
9. Install Firefox for the internet browsing
Even if I don’t use my home theater computer as a main internet browser, it is nice to have that option. For this reason, I chose to install a Firefox browser to the Launcher program inside the media center. Here is a quick guide to install Firefox on your XBMC Live Linux.
10. Install Grooveshark add-on for streaming your favorite music
I have been using Spotify music server on my Mac Mini, but I found it too difficult to install the spotyxbmc script to the Dharma release, so I installed the Grooveshark add on instead. It is very useful service and you should find the most of your favorite music from their service.
If you managed to read all the way here, congratulations! Now you have a smoothly running media center that you can be really proud of. While I am typing this article, my wife is watching her favorite TV show while holding a Logitech MX Air Mouse on her hand to navigate through her movie collection.
Just take the XBMC Live Linux for a test drive, I am sure you will be as pleasantly surprised as I was.
You might also be interested in these great XBMC add-ons to make your interface better.