I am going to build a HTPC this week and i will buy the parts this weekend. Its primary purpose is a HTPC but it will also be used for ripping and decoding DVD's. I will buy the parts from Micro Center because it is right down the street from my house. My budget is right around 1000. The parts that will not be needed are a monitor, keyboard and mouse.
What's your video source (Cable/Satellite/OTA)? If it's cable or satellite, do you require a set top box from the provider? If so, look at getting a cablecard TV Tuner solution rather than the Hauppauge. If not, then the Hauppauge Win-TV-HVR 2250 is a good choice.
Personally, I'm not a fan of on-board graphic solutions, but since Microcenter is just down the street from you, you can give on-board a try and if it's not to your liking, then get a low-end graphics card.
My video source is the Cable company and i am going to get a Ceton cable card tuner in the future to get my encrypted channels. Is there a problem with the Intel 3000 intergrated graphics for watching TV? I am not going to be playing games on the computer.
As I said, I'm not a fan of the on-board solutions. I've heard too many stories about, "they claim it works for HD content" only to hear "HD Content playback is stuttering" from people who use it. Then again, others say it works fine for them. Personally, I've never tried it, so I can't say yeah or nay. Hence the suggestion to give on-board a try and see if it works for you. Since you have the Microcenter right there, it's easy enough for you to go pick up a graphics card (rather than waiting a few days for Newegg to deliver).