The problem is: Android 2.2 is written for smartphones and tablets, not for HTPC. The product has multiple problems such as it does not work well with external hardrives, therefore, making playing a 20G BR rip impossible.
Also the generic player plays only MP4. For WMA or AVI you need to use other players and the smoothness of viewing has a lot to do with the cpu. 600mHz CUP will not work well, you need to go up to 1G Hz to get a ok result.
The pros are: flexibility of using all kinds of apps, such as CNTV and onling-streaming services from China. But, for whatever reason, the streaming, while smooth, were broken into small fragments, therefore making viewing the whole program quite annoying.
I would get a 400dollar laptop from HP (I would stay away from acer or asus because of its wifi problem) and watch online TV using PPTV or CNTV. Youtube also has tons of great programs for free and the speed is quite acceptable.