Oh god yes. In fact that setup will play Battlefield 3 at 1920x1080 if you dont mind Medium settings. In fact, even without the 650m the integrated graphics on the i5 would play 1080p video no problem.
ehh a quick google search comes back saying that it has "Intel HD Graphics" So im not sure. I would guess yes though, the integrated graphics on any laptop in the last 2 years at least should be able to do 1080p video.
I currently have a C-Series Dual Core C-50 with RadeonHD 6250 graphics and high def movie playback pretty much sucks. Can anyone suggest minimum hardware requirements for HD video playback?