Right now I have a 360 downstairs, and my main pc upstairs running windows 7 Ultimate.  I use movies, and OTA tuner on this box, stream everything downstairs and it works perfectly.  I am up against some storage limits though, and am working this through for the best way to expand storage and gain some backup ability.

 A:  How much stuff media center wise can go on the WHS?  Will it work just like it does now, thumbnails and descrips in the "movies" section, tv live and streaming to the tv section?  Do I store this directly on the whs, or does it only get backed up to the whs?

I am thinking of using the WHS as a centralized media storage with multiple drives to cover file loss etc, and keep no media on the main computer.  Is this possible?  Or does live tv etc still have to go the the media center pc? 

Can my movies be stored directly on the WHS?  Or again does everything have to stay on the main pc and can only be backed up to the whs?  Pretty new at this so any helps appreciated!

Everything can be stored on the WHS....  you still need atleast a small drive to record tv with because the way it works currently is tv is automatically moved to the whs after the recording has completed.  It cant record directly to a whs but the currrent solution is completely hands off so its just as good.

I have a WHS and am a big fan of its integration with media center.  I keep no media at all on my windows 7 computer.

So divx / xvid etc play fine through the windows 7 box to the 360 just like they do now? This would be perfect!  Thanks

Just so I understand but you can store all of your media on the WHS and TV recordings go to the WHS?  Then with an extender you can access them using WMC?  Is that right?