Using an older machine as Media PC?

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I have an older PC that hasnt been used for a while now and was toying with the idea of making into a Media PC.

Spec of the PC :-
AMD Athlon 3400+ 2.4ghz)
2GB ddr
Nvidia 7600GS 512MB
Biostar Ideq 200N (small form factor unit)

Would this be good enough to play HD content?

Very tight budget if i was to upgrade anything, so what do you think?
 
My girlfriend has a similar setup and its fine as a media pc. However she is only running at a fairly low resolution. That graphics card might struggle at 1080p
 
My HTPC is fairly close:

AMD Athlon 5000+ 3.00GHx x2
2GB Corsair XMS2 Ram
ATI HD 6450 512mb
Base unit is a HP DX2250

Runs everything lovely IMO. I bought the graphics card purely for the HDMI output. I run W7 on it with Media Centre and XBMC, it's great.
 
I had a very similar setup as well using the HD5450 which is basically the same card. It was great as a little multimedia pc as its extremely quiet and half height too :)
 
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