Firstly, I use that case for my HTPC - it's really good. Make sure your PSU is 140mm maximum, as it won't fit otherwise, however. Speaking of PSU, I'd not get a generic one like what you've linked...Silverstone do a 500W modular PSU that'll fit in that case...see my profile for details.
Anyway, the Intel onboard graphics aren't capable of displaying HD at the 23.976fps it plays at, so you could consider the G620 Pentium chip and a discrete GPU like the AMD 6450 which does a much better job. Which is again my build, so I can testify to the fact it works well for home theatre.
its not that intel can't play 24p its that there is 1 repeated frame about every 4 minutes and that only if you change the refresh rate to 24hz (if your tv even supports it) for most people who keep the refresh rate at the standard 60hz there is some judder during panning scenes. Some people notice it and some don't.
I have AMD in my living room and intel SB in the bedroom and rarely do I notice it.