1. Create a file server and media center. The file server is going to be primarily utilized in my own house via wireless transmitter. *I use multiple laptops depending on my needs and availability and would like a central file repository to access files so I know I'm using the most current version. I will want to be able to SSH into the file server so I can grab files when I'm working remotely.
If you want to use the MediaCenter part over wireless, LinuxMCE will not fit your need.
You will not get the LinuxMCE GUI over wireless.
SSH and file server will work fine.
2. A basic Media server that will only stream movies I rip onto the HD and watching/ripping the occasional TV show.
Streaming the movies from a file share will work fine with LinuxMCE.
Isn't the MCE distro just a different flavor of linux? Or is there a better OS better suited for my needs?
The LinuxMCE distro is a specialized version of Kubuntu and yes, that makes it a different flavour of linux.
If you are not after all the things that LinuxMCE can provide in form of "Full house integration.", there is a OS that is better suited to the needs I have read here...
It does sound like Mythbuntu 8.04 is a better fit for you.
1. It provides a media server for pictures, movies, music and TV.
2. You can use SSH and let it be your file server.
3. You can install MythTV clients on your laptops that communicate with the server over wireless.
4. It can record TV shows, or stream live TV to a MythTV Client.