X-Box and Vista Premium vs. Med. Center 05

Hello and thanks in advance for your time. I found this stie by search and though my "problem" does not yet exist, I want some expert experienced advice and hope you can offer same, or tell me if it is not un your purvue.

I am a 47 yo. new father without great funds but who loves qualilty audio and vido - have setup an awesome theater in our living room consisting of a Pani ae900u projector, 100" screen, and excellent (reasonable cost) video switching receiver and surroung speakers.

Have read and heard that X-Box (besides gaming which for me will be good as my child grows) is a great interface that will allow me to show pics and video and play music over my network (hard wired) so that I can avoid having to burn DVD's or setup a computer in our living room. Do not plan to download to X-Box hard-drive, just use the "extender" I belive it is called.

Since all my PC's are standard XP, I was planning to get a Media Center 05 and about to purchase a refurbished one but much easier to find a great deal with Vista Premium than Media 05.

PROBLEM: I read a few months ago that Vista was a CRIPPLED VERSION of Media 05 and may not even work at all much less as well as 05 with X-Box. Is this true or can I rely on the Vista Premium for my needs??

Thanks,

Peter