I've setup a MythTV system using Gentoo Linux, and it went very well. I just used old hardware that i knew worked well in Linux (AMD Duron 700 + MSI board). The best thing I can recommend would be to get a capture card that is well supported. Trust me, it'll make setting things up all the easier. Hauppage's WinTV PVR-250 is the card I used, and it's probably one of the best supported. The WinTV PVR-150 by the same company is essentially the same card, but uses a different chipset. It's decently supported currently, but getting better by the day. These are both hardware capture cards, which are a must if you want to go with a lower-end system. The encoding is handled by them so the processor doesn't get overworked. That's a good thing because it can then concentrate on more important proceedures Myth has, such as commercial flagging (yay!) and transcoding, to make your files smaller.
I attempted to use KnoppMyth myself when I first started out, just to get a system up and going quickly. It didn't end up working so well for me. I'm a control freak too, so I chose Gentoo because it was easy to pick the parts of myth I wanted and leave out those I didn't. Plus, I'm already running it on my desktop machine, so I'm familiar with it.
Good luck with the setup, and if you don't mind, keep us posted on the results. I'm always eager to hear other's experiences with MythTV.
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perl -e 'print $i=pack(c5,(41*2),sqrt(7056),(unpack(c,H)-2),oct(115),10);'
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