CPU with integrated graphics for HTPC

Most definitely the i3. This one in particular: http://www.newegg.com/Product/Product.aspx?Item=N82E168...
It has the latest in Intel's Integrated HD Graphics.

Most definitely the AMD, I prefer the A10-5800K but the others would probably be fine based on what youre wanting to do. Cheaper than the i3, but not worse.

PCPartPicker part list: http://pcpartpicker.com/p/GJhK
Price breakdown by merchant: http://pcpartpicker.com/p/GJhK/by_merchant/
Benchmarks: http://pcpartpicker.com/p/GJhK/benchmarks/

CPU: Intel Core i5-3470 3.2GHz Quad-Core Processor ($149.99 @ Microcenter)
Motherboard: ASRock B75M-ITX Mini ITX LGA1155 Motherboard ($89.99 @ Amazon)
Memory: Patriot Viper 3 8GB (2 x 4GB) DDR3-1600 Memory ($46.99 @ Amazon)
Storage: Seagate Barracuda 1TB 3.5" 7200RPM Internal Hard Drive ($75.98 @ Outlet PC)
Case: BitFenix Prodigy (Black) Mini ITX Tower Case ($104.98 @ Newegg)
Power Supply: Antec High Current Gamer 520W 80 PLUS Bronze Certified ATX12V / EPS12V Power Supply ($88.02 @ Amazon)
Operating System: Microsoft Windows 7 Home Premium SP1 (OEM) (64-bit) ($89.98 @ Outlet PC)
Total: $645.93
(Prices include shipping, taxes, and discounts when available.)
(Generated by PCPartPicker 2013-03-01 01:25 EST-0500)

definitely the AMD quadcore

You have a heavy multitasking requirement so you need 4 real cores . Probably the lowest clocked quad

Go with AMD. Real cores > hyperthreading when multitasking, and a much better iGPU. This is an old marketing video comparing Llano and Sandy Bridge but it gives you an idea http://www.youtube.com/watch?v=XqBk0uHrxII

This is almost exactly what I was thinking. One thing I have seen with the APU's is better performance with high speed ram, any reason to go faster than 1333 for dvr use? There will be no gaming done on the pc and I think that's what it was used for.

As for placement of the pc, it will be on the floor by the subwoofer since there is no room on the tv stand for a case like the ml03b. I've been looking at the Fractal Design core 1000. Any thoughts on this or something similar that is quieter?

While the APU based system would probably run slightly better with faster RAM, there shouldn't be any need for it. Additionally, I was looking to keep it at budget.

No problem with going with that case. I can't speak to how loud the system might be, but if it becomes an issue, you can always swap out for a third party Heatsink and quieter fans.

-Wolf sends

Best answer selected by optimus1883.