gazza27: Ok, I was under the false interpretation that you can record Sky via an extender. However, I do know that you can record tv via the Xbox 360 onto a Media Centre PC, as it says this on the Microsoft website.
Just to clarify this entire thread, the SKY decoder has to be connected to your Media Centre Edition PC using a TV tuner.
The Xbox 360 can remotely control the functions of your Media Center Edition PC.
Even I was a getting a little confused.