Hulu Desktop is the easiest, most powerful, way to watch Hulu videos on a Media Center PC.  Unfortunately, being a Flash based application, it doesn’t work on Extenders.  Use PlayOn / vmcPlayIt for Hulu on those!

Using Tecknoworks Hulu Desktop Integration 1.0, you can seemlessly launch Hulu Desktop from Media Center, and exit Hulu Desktop to go back to Media Center.

Check out this excellent demo video of Hulu Desktop.  The way the remote is used to watch videos and navigate the slick Hulu menu system is REALLY simple and impressive!