According to Mary Jo Foley Windows Home Server is going to get more entertainment features:
I’ve tracked down (thanks to sources) a couple of new bits, however. The next major version of Windows Home Server is codenamed “Vail,” I hear.
And Vail is going to include more entertainment “capabilities.” What that means, precisely, I don’t know. Does it mean Windows Home Server will somehow become one with Windows Media Center?
There is obviously areas that Home Server would benefit inheriting some Media Center functions and a server based Media Center makes sense, I very rarely use my Media Center in any role other than a server. As long as the developer teams work together and Windows Home Server/Media Center doesn't get re-invented as another product (we don't need another Media Center platform)
Windows Home Server ‘Vail’ to get more entertainment hooks