Apple introduced their new low cost $499 Macintosh server today. If you visit PVRBlog, you’ll see it’s generated some buzz for being an interesting way to build an HTPC (Home Theater PC). It’s got a 1.25Ghz (or 1.5Ghz) G4, easily powerful enough to crunch video streams, as well as a 9200 Radeon graphics card with DVI,VGA, SVideo, and Composite out. It’s only weakness is the small hard drive (80Gigs) that comes standard. The small form factor definitely gives it a little extra in the cool factor category.

I’m somewhat surprised that iLife (that set of software products created by Apple and bundled with their hardware) hasn’t come out with a new product in their lineup. Let’s see: iTunes, iMovie, iDVD, iPhoto; What’s the missing title for a complete HTPC computer? Wouldn’t iDVR (or iPVR as rampy of byopvr.com would say) fit in nice with that set of products? Throw in a cool service like iTunes for DVD rentals using Apple’s DRM technology, and you might actually have a nice little revenue stream there.