I personally wouldn't bother trying to upgrade that HTPC, it's pretty outdated and you could use it intact for another purpose on your home network. Well, if you have the budget to build a new one that is.
I recommend you not sink any money into a new AGP video card, they are really getting outdated. That CPU is underpowered for any decent FFDSHOW use and I personally wouldn't run anything less than 1GB RAM at this point (I use 2GB for gaming purposes). In trying to recycle the few componeants that you think are still good really won't save much money and builds into your new system well-used parts that are more likely to fail. It's not worth it to me, especially considering you'll have parts laying around rather than a functional backup HTPC or network workstation/server. When I retire HTPC's after building a new one I just stick it on the network and assign it a task. Now I'm at the point where I just rotate in the newest HTPC and retire the oldest - usually it's four or five years old and ready for the trash heap by then.
Just keep in mind most new componeants are better than those you have and most likely more campatable with a new system. I'd be reluctant for example to slap an old PSU/heatsink into an otherwise brand new setup. Newer PSU's are better able to handle increasing demands on them than older ones. Well, in many cases anyway.
Edit: Yep, you can re-use your WinXP Pro license.
I recommend you not sink any money into a new AGP video card, they are really getting outdated. That CPU is underpowered for any decent FFDSHOW use and I personally wouldn't run anything less than 1GB RAM at this point (I use 2GB for gaming purposes). In trying to recycle the few componeants that you think are still good really won't save much money and builds into your new system well-used parts that are more likely to fail. It's not worth it to me, especially considering you'll have parts laying around rather than a functional backup HTPC or network workstation/server. When I retire HTPC's after building a new one I just stick it on the network and assign it a task. Now I'm at the point where I just rotate in the newest HTPC and retire the oldest - usually it's four or five years old and ready for the trash heap by then.
Just keep in mind most new componeants are better than those you have and most likely more campatable with a new system. I'd be reluctant for example to slap an old PSU/heatsink into an otherwise brand new setup. Newer PSU's are better able to handle increasing demands on them than older ones. Well, in many cases anyway.
Edit: Yep, you can re-use your WinXP Pro license.