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I currently have a XBMC machine running on Windows 7 and have no experience with an Android Box or a Linux machine.
Coming from Win7 , what are some of the limitations I might run into going with either Android or Linux
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Android won't play as many files. hardware support is not as good. There really isnt any limitations for linux and xbmc vs windows. I would say its much easier with openelec.
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Careful of that last point... that's a bit like saying "Windows support isn't good because XBMC won't run on a 386SX".
XBMC runs quite happily on much Android hardware, and I can chew through 1080p files with glee. I think the real differences in platform are more around audio support (e.g. HD audio) and/or support for things like Silverlight streaming and external Bluray players.
That said, I'd vote for Openelec as a starting point as well. Ultimately, you want to use the application and not the OS, so if OE meets your needs then it's the easiest way to go.