A computer is needed to run as the media server. It should have at least a 1GHz processor, 1GB of RAM, network card, Ethernet port and a 500GB or higher hard drive. In addition, an external or second hard drive is needed to backup the data.
If the computer is not loaded, an operating system will need to be installed. This can be either Linux or Windows. For someone who isn't familiar with Linux, Windows is the better option. Windows Vista can be purchased at any electronics and software store (see Resources below).
Connect the computer to a TV using an S-video cable or RCA cables. Connect a mouse and keyboard to the computer. Turn the computer on and make sure it is displayed on the TV.
Run an ethernet cable from the Internet modem to the media server. A wireless card can be used, but the transfer and download rates will be far slower than a physical cord. If the network is password protected, configure the connection.
Install media software. This includes CD and DVD ripping software, DVR software, and video and music players. There are hundreds of different applications available to download and purchase (see Resources below).
Rip your current CD and DVD collection to the hard drive. A bookcase full of discs can be gotten rid of in favor of electronic storage. This also prevents loss of media from dry-rot and air damaged media discs.
This step is optional.