Newbie, My New HTPC, Suggestions and Comments Please

Hello,
i have been asked to make a low spec HTPC for someone. They wish to use it to record 1 or more TV programs (Not a huge amount) and View TV at the same time. Also Music Streaming from the Server is important for parties. They were on a budget of around £300 to £360 and asked that the box blended in like an AV or DVD player.

Hauppage WINTV HVR 1100 Digital + Analogue with Remote Hybrid
Western Digital WD1600JS Caviar 160GB 8Mb Cache 7200Rpm
Antec NSK2480 MATX Desktop Case Black & Silver - With 380W EarthWatts PSU
MSI K9VGM-V K8M890 Socket AM2 onboard VGA 8 channel audio mATX
AMD Athlon 64 X2 4400+ (2.3 GHz) Socket AM2 Energy Efficient L2 1MB (2x512KB) Cache
OCZ (OCZ2G8001GK) 1GB (2x512) DDR2-800 PC2-6400 CL 5-5-5-12 Gold XTC Dual Channel
LG GSA-H55NBAL 20x DVD?RW/DL/RAM IDE Black Bare Drive - OEM
Sapphire HD 2400 Pro 256MB VGA DVI TVO PCI-E Graphics Card
D-Link AirPlus G DWL-G510 Wireless PCI Adapter
Hauppauge WinTV Nova-TD Diversity USB Stick with Dual DVB-T Tuner
Vista Media Centre (Home Premium)

I was hoping for comments if there are any known issues with the setup, and if it is up to the job.

Any comments are much Appreciated.

Regards, and thanks in advance

Liirge!!

Cheers for that.
yer just delete or burn after watch!
So The Earthwatts have developed a tainted reputation, hmmm its a critical component specially as they live in an old house with dirty electricity.
I'm gonna give the 1 gig a Shot, and see if it desperately needs updating at a later stage, my desktop is running Vista on a Gig, and its reasonable performance, if i change the startup to the bare minimum (No Side bar etc no aero) and just the media center application then im hoping ill get away with it!!!