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Has anyone been able to connect a pc to their TV via DVI ? I have tried and never been able to get it work.

Yes, I've done it with both a PC with an Nvidia video card, and with the Mac Mini. It's practically plug and play in both cases.

If it's not working on your setup, then it's possible your TV and video card don't play nice together. I understand that can happen. Search around forums that talk specifically about home theater and home theater PCs, and see if you can find the names of your video card and TV set in the same thread.

Incidentally, to answer the original poster's question, I love my Mac Mini for this media-playing purpose. With a wireless keyboard and mouse, it's the ultimate hook-up-to-your-TV all-purpose video player, media streamer, etc... It's the smallest, quietest, most capable little home-theater PC I can think of.
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Tony Fabris