What is the status of this as it is right now?
I am looking to switch from my Boxee Box to XBMC and would love to use the Pi to make the transition. I understand its not final or anything of that nature but if you folks could give me a rough idea of where its at that'd be much appreciated.
I'm using a version of OpenELEC I built yesterday (r10935).
XBMC/OpenELEC, it's a work in progress so some things are good, some are bad.
SD playback is pretty good on the whole, but HD playback (particularly 1080p) a little glitchy (certainly with LG IPS225V monitor, it seems to renegotiate the HDMI handshake every 30 seconds or so, but not always). HD audio is not playable (hardly surprising) but presumably may work on "passthru".
The biggest problem by far is the fact that the XBMC GUI consumes close to 100% CPU all of the time (but not during playback), and this makes scanning media libraries near impossible as there is so little CPU free to work on the scan. Also, start a scan and the device soon becomes unresponsive necessitating a reboot.
The GUI (certainly in OpenELEC) is currently so sluggish that it rules out any possibility of the Ras-Pi being used as a media player as it's such an unpleasant, slow and glitchy experience (it often loses the ability to display cover and fan art, showing black rectangles instead) - hopefully this is high on the list of priorities to be fixed. I've tried all the dirty region fixes, but none have yet worked.
What has been achieved so far is certainly fantastic (thanks Gimli, Dom etc.), but it's a fair way from being usable and replacing any current media player you may have.