Setting Old PC as a file server!?

So I've been wanting to do this for a while, changing my current desktop (AMD Sempron, 512 mb ram, 80 gigs of space) into a file server for my laptops to access and use. Is this possible? And should I use XP Pro or *ubuntu?

I'd also want this PC to be able to connect to my HDTV when I get my DVI-I to HDMI cable and act as an HTPC.

Am I asking too much or are both of these options possible?

 

It is very much possible; if anything, the problem is not too few options for how to do it, but possibly too many (at least in the sense of getting a little confused if you start googling on the subject).

Given that you really seem to want to turn this thing into a media server, you should probably focus your research in that direction (check in Wikipedia, and you'll find some articles on DIY media servers, including, I believe, a version of linux that's been set for that sort of use).

You will also almost certainly want to increase the amount of RAM (servers don't need a lot, but your usage ideas will probably demand more RAM than the typical server), and you will also want to vastly increase the amount of hard drive space (thankfully, that can be done quite cheaply, as 1TB desktop drives can now be had for at, or under, US$100).

 

Another thing is that my desktop is using a wireless internet connection... still possible or will the connection be too slow? Its a a/b/g card.

 

You'll need a better wireless connection than g to stream your HD content. You'll be fine with SD content. But once you start pushing 720p or higher stuff your wireless connection will barely cut it. 50% of the time the link quality will not be good enough to have a steady stream.