a C2D e3300 & G41 chipset mobo would only be ~£70
If the G41 chipset comes with Intel® GMA X4500 IGP and HDMI out then that will be good enough for your needs, the IGP will take over decoding HD content with no trouble at all, the CPU you have in mind should also handle day to day use with little effort also but won't offer stellar performance in CPU intensive tasks such as Video Encoding (DivX etc).
The newer AMD processors based on Propus/Rana/Regor cores offer a more rounded processor for the same money as what Intel are offering, this would be better if you intended to use the HTPC for other duties such as gaming and media production . . . . the AMD 780G and newer 758G just are better than anything Intel® can offer, in particular the latest 785G features a Radeon HD4200, DX 10.1, SM4.1, 500MHz Core (overclockable to 800MHz-1GHz), 40 unified Shaders, UVD2.0, up to 512MB Hypermemory, VGA/DVI/HDMI output, Dual Display, yada yada . . . the board also features a full fat PCI-E 2.0 x16 slot should you later decide to plop in a nice beefy GPU, 5-6 SATA II ports include RAID options, Firewire, eSata etc, an amazing BIOS with tons of useful overclocking/undervolting features . . . AMD basically currently *own* the budget HTPC arena no contest!
I would say if you can pick up a
used Intel® LGA775 uATX motherboard and processor then go for it but if buying new I would seriously urge you to give your hard earned cash to AMD as they really need it right now and are offering tremendous value for money! look into an AMD Athlon II X3 425 and a AMD 785 combo at approx £100 inc
