I love weekends like this. Got a pair of Raspberry Pi s. Had a great time setting them up.
There are lot of different OS you can install in the Raspberry. I tried Raspbian and hooked it up with my VGA Monitor using an adapter (Raspberry supports HDMI by default).
And then I tried Raspbmc, on my TV. That was really a great experience, the youtube video was coming full HD. And what more you can actually install xbmc remote on your smart phone (I installed it on my android) and use it as a remote.