My GPU died recently and I figured I'd rather get a new PC than replace/upgrade. However, my old PC is still pretty decent (not for current gaming). It has the old e6300 with a cheap mobo that doesn't allow much o/c. So I figured I'd give it to my friend so he can use it as aHTPC. Going to get an Hauppauge 2250 (or something cheaper) as the TV tuner, and going to be using 1440x90 resolution.
For DVD playback it should not be a problem, in fact, you could even go for a slower card than that if it's available. The 64 bit memory interface will make things a bit slow in larger screen resolutions, though.. It's probably enough for your needs.