Visiting Microsoft's Media Center posse in Redmond, I just caught a glimpse of the Windows 7 Media Center interface with integrated touch control (no third-party software) on an HP TouchSmart. All I can say is, I've always loved the MCE user experience—it really is a highlight of Microsoft design—but adding smooth touch interaction makes it even better. The only thing missing here is multitouch, but I'm told that's coming. Check out the vid. [Windows 7] Update: At Microsoft's request, we have removed the video, but will soon publish a walkthrough of Windows 7 Media Center features.
Just need a touch screen 50 in plasma and I'm SOLD!