I want to say thank you to all those that helped with the many questions I had. I ended up going AMD instead of Intel due to cost, and I am very happy with the results. Here it is:
AMD x2 5050e
ASUS M3A78-EM
4GB G.Skill DDR2 1066 RAM
QAM Dual Tuner card w/remote
2 TB storage
Vista Ultimate
nMEDIAPC Black Aluminum HTPC case
DVD multi
Total build around $550. I am having a blast, and will be tinkering for some time. The video playback is perfect and needs no adjustment. But there are so many cool plugins to goof around with!
Scott