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openELEC.tv
It'll take a bit of reading, etc, but not bad for a linux noob to get it buzzing along...
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I bought a Revo 3700 a few months ago installed openelec from a usb stick to the hard drive then just added the nas shares and changed skin to transparency and not had to look at the Revo since just use it
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seand
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On the 3610 I run gnome in the background all the time. I use a mini Lenovo keyboard. When we are watching something and we pause XBMC for a minute to answer the phone or run to kitchen or what have you, I use the backlash key to toggle XBMC in and out of full screen/windowed. I often leave Firefox open to my SAB daemon page open. It does not adversely effect XBMC performance that I can tell.
Some people prefer the total appliance experience. Its more preference than anything else.
Acer Revo 3610 w/ Ubuntu 10.10, Giada Cube Win 7, 2 ATV 1's one w Crystal HD card, UnRaid server w/ SAB/SickBeard/Couch Potato/Transmission, MacBook Pro, Hackintosh Dell Mini 10v
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seand
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I'm realizing i was a bit cryptiC.
There are many flavors of Linux. A lot of them are pretty industrial in flavor with no graphic interface at all. XBMC Live and Open Elec are both designed to be super minimal installs in terms of OS with everything you need to run XBMC and nothing else.
Since you are unsure about jumping feet first into that kind of environment where in case something doesn't work you have to log into terminal and adjust things with Linux line commands why not install one of those two on a USB thumb drive or SD card. Then on your Revo install Ubuntu or get fancy and partition the drive to have both a Windows 7 and Linux partition.
Thats what i did. Basically I think your 3700 will come like my 3610 - preinstalled with a version of Windows 7 with a bunch of bloatware you won't want to run. So I "found" an OEM Windows iso on the internet used my Mac to burn a Windows 7 install CD. I had a USB DVD drive to boot the Revo from but you can use a tool called win to flash I think to make a Windows install image on a thumb drive also. Its generally easier to first resintall Windows leaving blank unpartitioned space for Ubuntu than to install Ubuntu first so whats what I recommend doing.For me at this point I opened it up and put in a blank SSD drive to increase speed and reduce heat.
I used the Bios to boot Windows from USB and then from the installer reformatted the HD to leave a big chunk unformatted for Ubuntu. Windows 7 and its hidden "restore" partition want a minimum of about 30gig, Ubuntu probably deserves at least 20. How you split it beyond that is up to you. Install Windows 7 from the OEM image (either disc or the flash drive you just made) and use the serial number on the side of the Revo for Windows's serial number. You can download Ubuntu from Ubuntu.com and either make a CD or thumbdrive installer and again boot from the installer to format the empty space you left from the Windows 7 reinstall. Ubuntu installer is smart enough to leave both the main Windows 7 and its hidden "restore" partition alone and will install Grub to help you in multi-booting. It will guide you through partitioning your blank portion of your HD for Ubuntu, formatting the Linux partition and installing Ubuntu.
If you are careful in your steps you can reformat the same flash drive 3 times - once to reinstall Windows, once to install ubuntu and once to be your XBMC Live/Open Elec boot drive. That way you can try XBMC all 3 ways - in Windows, in Ubuntu, and stand alone as a self-contained apliance with no desktop GUI.
I have found I like Ubuntu with a basic gnome (not the extra desktop animations) and Firefox and Hulu Desktop for Linux (in case the icefilms plug-in for XBMC is acting up). Rather than having having to launch gnome after XBMC quits I use the bottom option to auto load XBMC right after gnome loads with gnome running in the background always. That way I can as I said use the backslash to toggle XBMC into windowed mode, minimize the window and go fiddle with my various file downloading web daemons whenever I pause XBMC viewing without totally shutting down XBMC basically ever. With SSD drive the heat build up in the Revo is not so bad and energy consumption is less than with a conventional HD. After you install ubuntu you will want update VDPAU and NVIDIA drivers, also Flash if you plan to use it, for example with Hulu desktop.
I know folks say that running this extra stuff slows down XBMC but honestly with the SSD the only time I could tell apps were slowing each other down was the time, just to see what would happen, when I tried running XBMC and Hulu Desktop at the same time. I've often left SAB and Sickbeard tabs open in Firefox for days at a time I'm afraid to admit and it hasn't, from what i could tell, affect XBMC playback, though I probably would not recommend it.
YMMV.
Acer Revo 3610 w/ Ubuntu 10.10, Giada Cube Win 7, 2 ATV 1's one w Crystal HD card, UnRaid server w/ SAB/SickBeard/Couch Potato/Transmission, MacBook Pro, Hackintosh Dell Mini 10v