Highlights of hosting servers at home?

You can host gaming servers!

You could do something practical with it: email server, webserver, fileserver, etc.. (If you want to host your own domain, you’ll need to set up a DNS server).

You could do something fun, like @Triiiple suggested.

I’m still trying to convince my wife, but I’d like use our computer as a media center that could also stream movies and music.

(On second thought, you probably don’t need your own DNS. Your domain registrar can handle that for you.)

Use Ubuntu Intrepid, and then follow these articles. You won’t be doing any of the SSH stuff though. Boom, web server for you to mess around with!

Be aware that with most ISPs, hosting servers on your consumer residential connection is a violation of your terms of service. I wouldn’t go pointing any domains at a nameserver hosted on your connection.

Mediaserver good idea, public available webserver bad idea
why?
because once you make the server available to the net, you have to take care of every piece of software you install, keep it up2date and secure. you don’t want an abuse mail from you ISP because someone hacked you smtpd and sent huge loads of spam from your ISP.