Your motherboard has an Intel Atom D2700, which is not enough for the higher end of video playback. The Intel GPU you have is no good for hardware acceleration (more modern Intel GPUs fare much better).
Thankfully you have a PCI-E slot so you should get a low-power Nvidia card and you will be able to use that for hardware acceleration of most video codecs. Like a Geforce 210, you can get them for about $25-30.
The other thing I would suggest is to consider using OpenElec, which is XBMC in a very light Linux OS.
Thankfully you have a PCI-E slot so you should get a low-power Nvidia card and you will be able to use that for hardware acceleration of most video codecs. Like a Geforce 210, you can get them for about $25-30.
The other thing I would suggest is to consider using OpenElec, which is XBMC in a very light Linux OS.