Silicon Valley based Niveus Media made compelling announcements of its new media servers, which are based on Microsoft’s Windows XP Media Center platform and also use Intel’s Viiv technology. While digital photos and music are on tap, as with many media servers, what will separate Niveus’ machines is the ability to handle HD DVD and other high-definition content.

In addition to the ability to decode and record Over-The-Air HD, Niveus announced it will build CableCARD capability built into its media servers in 2007. The HD DVD compatible line starts at $3,499 with the Rainier Edition, and its Pro Series starts at $6,499. Both units are expected to ship by the end of the month.