Yes, MCE requires a DVD drive
F-Stop, Dell Requiring a DVD Drive for Windows Media Center:
I was at the Dell site looking around and noticed that when I went to customize a system I had the option of upgrading to Windows Media Center – but only if the system was configured with a DVD drive. Am I reading this right – will Dell only sell Media Center with a DVD drive?
Actually, it’s, us, Microsoft who requires that OEMs configure their machines with DVD players.