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Dual Core Atom HTPC


911alertme
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I'm thinking of making a really lightweight home theater PC. As the title says, I am planning on using a Dual Core Atom chip. In particular, this one. With 2GB of RAM and a 250 GB hard drive, I can have this unit completely together for about $275 and everything purchased locally. I have read somewhere that this CPU is capable of playing 720p content and I probably won't play anything bigger than that. What do you guys think? Will this have enough power to play back this content?

The second part of my question is how do I connect it to my TV. I have a Sony Grand WEGA TV that is a couple of years old now. It has a couple of component inputs and a DVI input. Looking through the manual it says this about the DVI port:

1 terminal, 3.3 V T.M.D.S., 50 ohms
The DVI-HDTV input terminal is compliant with the EIA-861 standard 
     and is not intended for use with personal computers.

I would like to output to the TV in a higher resolution than 480p.

The audio part is easy (3.5mm jack to RCA) but the video part is tricky. What do you guys suggest?

Thanks for your help,

Spencer

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