Question on graphics cards and videos

Im trying to decide on a video card so i want as many opinions as i can get. Im going to put a computer in my moms room. She is going to use it to surf the internet and play a couple of games(games like solitaire, and simple graphics slot games) im trying to research which card to get. The price range will be between 40 to 60ish bucks. I want her to be able to plays hd files (mkv,h264 ) but also my blu ray rips and regular dvds. She has a 32 inch hd tv. The problem im running into is trying to figure which cards have hardware acceleration, some cards play hd well but some card dont do so well on sd movies. I know some nvidia card have the pure video hd but some dont. Can some of you suggest a card from the video and not gaming perspective. The card is going in an antec p182 case so it doesn't have to be silent card. the rest of the pc specs are
core 2 duo e6600
onboard sound
2 gigs of ram
os is xp home prem

thanks for any help