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$25 credit card size ARM Linux PC Raspberry Pi is getting lots of love from community. First, XBMC playing HD video was shown shown off at Scale 10x. Now a specific Linux distribution Raspbmc is being developed by Stm Labs which is specially optimized for Raspberry Pi. XBMC team is not involved with development of Raspbmc. However, they are pleased that new distributions are making it easy to deploy XBMC on Raspberry Pi. XBMC team will continue to work on improving the XBMC experience on rPi and other systems.
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