This is the Sony VGX-XL3, a horizontal form factor PC designed for the living room that Sony said will ship in April. It has a Blu-ray burner inside, and the big story is its CableCard TV tuner. We looked around back and there was only one CableCard slot, but at least it's a start. There's also HDMI and 1394 connectivity, as well as a wireless keyboard and a 500GB disk.
Sony executives called its video "HD 1080," which means it's not 1080p or else they would have said so. But then, broadcast TV isn't 1080p, either.