updated 02:40 pm EST, Sat January 21, 2012
Raspberry Pi tested with XBMC
Having just shown its hardware running AirPlay, the Raspberry Pi team has shown the $25 and sometimes $35 micro PC running XBMC (video below). The hardware, even at its price, can still run the full interface smoothly. It also plays back 1080p through the use of Open Max to give a hardware accelerated boost to the video and audio sides.
The RaspBerry Pi is intended for as a small, open platform for hobbyists that want to make their own devices and handle niche tasks. Although it has just a 700MHz ARM processor and 128MB of RAM, the hardware acceleration and the light footprint of Linux let it accomplish more than the cost would suggest. It has a handful of expansion, such as USB, to take in other devices.
XBMC is a proof-of-concept port, but it and other apps are likely to stay.