It doesn't play CD's until you upgrade it. You can add a DVD or BlueRay ROM drive to make this a DVD/BlueRay/CD player.
It is a device which enables you to stream internet TV to your TV upscaling over it's HDMI output. There are a range of internet channels you can watch from a preconfigured menu and as internet TV is on the up, Syabas (the manufacturer), will be periodically modifying this menu.
It can accept a streaming feeds from a NAS or PC, but will take it's own HDD to store media.
So it will store your music and video in pretty much any non-DRM format and pictures of course.
It's a cheap alternative to an Home Theatre PC.
There are some reviews online and there's some stuff on Youtube.