daebis :
amazing... opposite of what alot of people have said, similar to a few , but the first person going as low as the atom...
An i was thinking that g620 + h61 + 6770/gts459 + Hti omega striker/xonair dx WOULD'nt be enough lol!!!
What i have mentioned abouve is something that fits well within the budget.
That will be plenty and sounds very appropriate, except perhaps for swapping out the HD 6770 for something a little less overkill like an HD 6450. I would avoid the Atoms, mostly because the motherboards most are on are mini-ITX boards with only one expansion slot, and a PCI or PCIe x1 slot at that. You want a mini-ATX or ATX board with at least a few slots to take the sound card, GPU, tuner card(s) that an HTPC needs.
At the same time what i need a HTPC for , like i mentioned above - 3d projection + HD video /movies to LED,
and most importantly lossless music to my next door hi-fi stereo system.
The lossless music can be done with an optical out from your sound card. It takes virtually no CPU to play audio any more, and video processing is usually done by the GPU with very little CPU load.
Besides this .. i happen to live in an old fort, therefore i need to stream all the data ( ie 1 sata hdd + 3 WD (1+ 1 +2 tbs) of data to 2 different entertainment centers...
So there maybe a day i will be watching as well as streaming different blu ray content...
Do yourself a favor and use gigabit Ethernet to do this. Streaming video over wireless is painful due to packet loss and latency even when you do technically have enough bandwidth to do it. It's like listening to an old dirty record, nothing but skips and stutters. I guess I may be dating myself with that comment
Current discrete GPUs, even low-end ones, do decode acceleration of Blu-Ray codecs at the appropriate bit rates. If in the future you encounter something your GPU won't decode, get yourself a new $35 GPU and then it will.
MOST IMPORTANTLY trying to build something that can be close to my brother in laws setup (he's an audiophile, which is a dedicated music player in one room and streams hd video to another. For which he uses usb into a converter which goes into a 3-4000$ DAC plays music through his tube amps to his crazy speakers ... so i am trying to do the same under 1000$s....
A decent sound card like you listed that provides an optical output to a decent receiver with decent speakers will produce good sound quality, provided your source material is high quality as well. I personally think a lot of the audiophile stuff is hokum (like Denon's "directional Ethernet cabling"); mostly you just need to get decent parts and feed it something remotely approximating CD quality source material. That can all be done with well under a thousand bucks' worth of parts.
Stig:
My HTPC uses a TYAN i7520SD with two 2.0 GHz Xeon LVs, 6 GB of DDR2-400, a 1 GB NVIDIA GF210 connected with a flexible PCIe x8 to x16 cable, a Pinnacle pcHDTV capture card, an 80 GB laptop drive for the OS, a 500 GB Seagate 7200.12 for data, and powered by an Antec EA300D PSU. I made it from some surplus, spare, and extremely cheap new-old-stock parts. It runs MythTV on Gentoo x86 and outputs to a 51" plasma. Think of this setup as a pair of Core 2 Duo T2500s on an ATX-sized i915/ICH5 board and you're pretty close. It handles everything I throw at it, including HQ deinterlacing of 18 Mbps 1080i OTA rebroadcasts. The GPU really does most of the work, the CPUs sit back and do commercial flagging (quickly, it's multithreaded) and background tasks. Not bad for a setup that maybe cost about $200 out of pocket over the course of a couple years and is darn near silent.