Well, some closure to this insanity...
After talking to many people, both here and in my circle of friends, I decided one thing - the decision ultimately rests with me. Every day it was the same thing: on one side I had people who hated emachines / Compaqs / Dells, etc. and on the other side I had those who heartly embraced them.
We decided to go with an emachine Media center PC with a AMD 64 processor, 1 full GB of DDR, and an ATI 200 Raedon Xpress graphics card. We figured "what the heck?" It's supposed to be a home entertainment system and we can afford this package right now.
I must say, for the moment, in spite of all the naysayers, I'm very pleased with it's performance today - Killer Instinct looked SHARP! Those ATI cards ARE worth the money (course, that GB of video memory didn't hurt...recall, I was running it on a NVIDIA with 64 MB DDR originally).
Basically put, it's a computer - they're all computers...and it's a matter of choice. We're happy with it, and with the rebates (yes I know, an ugly word) we got into it at a nice price.
Thanks again to all those who offered up their opinions. Your thoughts were not taken lightly!