Here's my story for all those that have been pulling their hair out with either XP MCE or Vista MC
I upgraded to Vista from XP MCE due to an unexplained phenomenon of jerky ass video playback (DVD or HDD records) after a resume from S3.
Vista gained me a much nicer (IMO) interface, but some standby issues (randomly stays awake, other times sleeps perfectly) - those I can live with. Video playback is perfectly smooth however.... No channel 10 or SC10 in VMC!
Both XP MCE and VMC share the same shortcomings in functionality. You cant queue a folder of videos (filmclips or tv series) nor can u create a playlist of videos as u can with MP3s.... a very silly oversight from Microsoft in my opinion!
With months toying with this problem and no solution in sight I tried Media Portal 0.22 last night. I LOVE IT!

It does everything I want in terms of functionality, and picks up ALL stations! Its early days yet as I dont have EPG info working yet so I'm yet to record, but timeshifting has been working perfectly, along with live TV, Videos, Music and pictures playback.