I have it (sort of) working now, though the TV image (and audio) is very jerky as if it can't keep up. I AM using old hardware, it's an athlon 1150 + radeon 7000 / SB Live as I wanted to do a feasibility test before getting any newer hardware. I think this may not be helped by it running at 1024*768.

Lowering it to 640*480 and it's still jerky. Playing an mp3 on its own and audio is jerky it's like a 486! (out of spdif)