Have a look at avsforums (the HTPC forum - sorry haven't got the url to hand). They reckon the core duo minis can run 1080p without a problem, but I'd make sure it's got at least 1GB RAM in it.
I have a the 1.83GHz core duo mini and 720p is no problem. Not tried any 1080p stuff as my display is only 720p so a bit pointless.
I have a macbook 2.0 Core Duo and it ran a 1080i file with digital audio with 512mb ram.
Now i have 2gb of ram, the only difference is that it starts slightly smoother. The res it outputs to my HDTV is 1360 x 768, so im missing a line of 6 pixels for the HDTV native res of 1366 x 768.
Id be interested to know if the mac mini could output 1080p's full resolution.
I thought the deinterlacing issues were due to the poor apple dvd player / driver s not hardware? If this has been fixed I may reconsider - I'm trying to decide between a 360/extender, mini & full htpc at the moment.
i couldn't say for sure, moving to the GMA900 graphics probably hasn't hurt in that respect, you'd need to get someone to test it to be sure though, not that I've ever noticed an issue on my MBP
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