Would it be possible to use a laptop PC as a hard disk recorder for the TV?
Yes, you'd most likely want a USB MPEG encoder box. I
suggest Googling for "USB MPEG ENCODER" if that's what you
want, but popular capture card companies may make them as
well, like Canapus or Dazzle... or you could look here:
http://www.videohelp.com/capturecards.php?CaptureCardRead=79
If so, what would I need to set it up and could I watch the recordings back
on the TV a bit like a TV DVD recorder?
Yes, IF the box you buy has an appropriate output matching
your TV's input options. For example, S-Video. That is
fairly common.
However, notebooks are not designed to run continuously
24/7, are best NOT running at higher load longer-term
either, and their HDDs are (fast enough for MPEG2 but
still...) not particularly fast. In short, a traditional
desktop or SFF (small form factor) non-laptop would be a
more optimal solution. Plus, it'll have a lot more HDD
space potential, something you will find you want a LOT of
with TV capturing.