You do not need the software at
http://sourceforge.net/projects/nv-tv-out/ because nVidia already includes TV out in the drivers. Read the nVidia documenation throughly and TV out will work.
You will always get tearing with VGA to TV converters (aka as rescanners). The VGA to TV converters from Focus Enhancements are the best converters you can get. The best way is to buy a TV and a video card with a DVI connector. The DVI connector will provide the best picture you can get from your video card.
If the video card gets to loud, use water cooling.
You could use xbox to be your entertainment center and place a computer in another room to do capturing or store videos, sounds, images. You will have to modify it and put Linux on it.