HTPC stands for Home Theater PC. It's basically using a pc to function as a set top box where you can do anything from watching tv to playing games through it. Currently, there is only one linux distro being used primarily to run mythtv and it's Knoppix. Mythtv is the frontend to the programs, such as mplayer and xine, and it basically looks just like Microsofts Media Center Edition. Its an alternative to Microsofts MCE, but in my opinion, linux is much better and stable than any Microsoft product. That's the reason I want to use it.
Have a look at http://linvdr.org/projects/linvdr/index.en.php and http://www.cadsoft.de/vdr/index.htm
I've written a small Linux DVR how-to for the beginner enthusiast. http://www.ehow.com/how_5870992_build-linux-dvr.html If you have any difficulties with your setup please let me know. I've built quite a few and can help. It really isn't that bad once you get going. Its a little bit of a learning curve but you will get it.