Would this PC work for a HTPC?

That could work as an HTPC. It's got low power consumption, which is your friend in the HTPC. Stick a GT220 in there, and voila.

Currently using almost the Same set-up

CPU: AMD Athlon64 3200+ (2.00ghz)
MB: Asus M2N-MX SE(GF6100 onboard/Nforce430)
RAM: Patriot 2x1gb DDR2 800
HDD: Seagate 320gb SATA
MONITOR: Sony Bravia 42' LCD

OS: Win7 (Build 7100)
HT INTERFACE: XBMC v9.11(26017)
SKIN:Mediastream V1.00(26/04/2009 - SVN r2121)

currently running 1080i (PC INPUT), . . .
guessing running HDMI would change that to 1080p

Only thing i would say is run a DUAL CPU .. as it will work better for Video decoding etc....
Great little system works fine.....plays my Handbrake(x264) files fine and clear

You sound like you're buying new parts. If so, the parts you've selected are kind of old tech. Look for an Intel i3 530 + H55 mobo or an AMD Regor + 785G if you are buying new.

get a dual core either amd or intel, but at least a dual core chip.... I would suggest an e7400, or athlon x2, since it is fairly cheap, I would get a new mb though, for the graphics card/accelerator, a 9600gt or 9800gt for light gaming and great video/hd with an hdmi output is good enough and less than $80(around $60-70now). YOu can use your old ddr2 RAM as it is still good and your drive is decent...

# AMD Athlon II X2 dual-core processor 250U
3.0GHz, 2MB L2 Cache
# 4GB (2 x 2048MB) DDR2 dual-channel memory (expandable to 8GB)
Enough memory to handle today's most memory-hungry applications
# 750GB 7200rpm SATA hard drive
Store your music, videos, photos and documents with plenty of space to spare
# 16X DVD Super Multi Double-Layer Drive
Play and create CDs and DVDs with this double-layer DVD/CD burner drive
# Wired Ethernet
Connect to a broadband modem with 10/100 Ethernet LAN
# NVIDIA GeForce 6150 SE integrated graphics

Additional Features:
# Multi-in-1 Digital Media Card Reader
# 6 x USB 2.0 ports, 2 x PS/2 ports, 1 x VGA port, 1 x headphone jack, 1 x microphone jack, 6 x audio jacks, 1 x Ethernet (RJ-45) port
# 300W AC power supply included



i found a pc offering a little more. How would this system work ?