Not so. I can watch mpeg4, it just has to transcode it first. But hardware SDTV PVR cards record to mpeg2, so the MVP plays them beautifully. Also, it is a hardware decoder, so it uses a fraction of the electricity of a full PC, with better quality, and a smaller footprint. It comes with a remote with no fuss. It plays mp3 and net radio, views pictures, and you can watch live TV with timeshifting. With GB-PVR it is very full featured, especially if your needs are listening to music, managing the recording schedule, and watching recorded programs. There's plugins for Sudoku, the weather, GMail, etc. If all you want to do is watch downloaded AVIs from the internet then it's not as good. The Hauppauge software sucks, too, but you don't need it if you use GB-PVR or MVPMC. With MVPMC you can play FLAC and also play media with UPnP or NFS so you don't even have to have a PC on, just a NAS or something. Hardly worthless.