What card for a home theatre system bluray films?

Define 'and maybe a few games'. Gaming is very hardware intensive, far more so than Blu-ray decoding.
For fair gaming and maximum decode the HD4670 (512 Mb, ignore the 1Gb versions unless they are the same or lower price) is your best bet.
For a few dollars less the HD4650 has less gaming clout but the same decode abilities.
Perhaps for even less the HD4550 is minimum for even low-end gaming but can still handle the Hi-def decode easily enough.
Pick your poison.

You want to go with an ATI card for bluray,
I would recommend anything between a 4670 and a 4870,
ATI cards decode the high def movies on the card (i believe) with no extra software,
I have an nvidia card and they want to make me buy PureVideo to allow me to decode on the card,

HD4650/70 Anything more powerful will require an PSU upgrade

thanks, i've seen a few hd 4670 but some don't seem to have hdmi output.

Since i bought the monitor new, and am using vga at the moment, how important is it to get the graphics card with a hdmi output? Or will vga do (somehow would have figured not, but never be afraid to ask a stupid question as they say)

It will be better to get a HDMI output, especially if the monitor has decent sound-most cards can send the sound output directly to the monitor through the HDMI connector.
No question is stupid, just ignorant, although you may get many stupid replies.
What part of the world are you in?
If you're in the UK have a look here: Dabs, Scan, CCL, Novatech, Microdirect, Overclockers, Pixmania and Ebuyer.

its being used on a computer with a seperate speakers so no sound from the tft, (but i gues if i used it on a lcd tv i'd need that feature).

Am in the uk so will look at those shops, thanks for the advice.

if anyone else has anymore advice would be welcome as well.

a dvi-hdmi plug would do the trick.

How would you get audio?

Here's a 4670 thats cheap with HDMI
http://www.newegg.com/Product/Product.aspx?Item=N82E168...