Video-on-Demand systems will be the video rental shops of the future. One of the great challenges in VoD domain is to optimize the cost/performance ratio of the designed system. In this paper we present a clustered, high performance, high availability and low cost VoD system, which is based on a network of personal computers. We experimented with state-of-the-art video compression algorithms like MPEG-4, although our system is video format independent. We succeeded to serve 90 near DVD quality streams per node, having great potentials for further expanding. We will show that the key factor of this success is the migration of performance demanding procedures to the clients of the system, which nowadays possess the appropriate processing power to support them. Furthermore, we present the results of our experiments with systems of 2 and 3 server nodes that prove the linearity between the number of server nodes and the number of served streams.