First of all be clear about your requirements. Htpc's are like a media center which has low tdp components, runs cool and not necessarily powerful for running demanding games and other multithreaded applications.
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Anyway suggesting you a good htpc capable of running blueray rips along with a good enough speaker system.
AMD Athlon II x2 255 @ 3k
Asus M4A78LT-M LE @ 2.6k
Corsair VS2GB1333D3 4GB @ 2.4k
wd green 1 TB @ 2.6k
LG 22X SATA DVD @ 0.9k
FSP saga II 350W @ 1.5k
Asus radeon 5570 @ 3.5k
Coolermaster elite 310 @ 1.6k
Dell ST222OL @ 8.5k
Asus Xonar DX 7.1 Channel Sound Card @ 4.6K
Microsoft Wireless Optical Desktop 700(wireless keyboard and mouse) @ 1.3k
APC 600VA @ 1.8k
Logitechl Z506 (5.1) @ 5-6K
Total = 40.5k
But don't expect to play any games at high settings in full hd resolution. If you have an existing 32 inch or greater size LCD for this htpc, then a better config can be suggested by scraping off the monitor.
You can use an i3 processor but the processor and motherboard will alone cost around 8000-9000.So go for Amd it will be more than enough.Obviously no games though.
You can get a Caviar Blue 500 GB instead of the 1TB caviar green.
hmmm..the above rig is optimum for ur purpose
still if possible try to squeeze athlon x3/x4 in ur rig will cost 1k more at max but will be a lil more better in performance
Buddy htpc's have a different taste altogether. You cannot simply add a 5670 and say you can game better. Do you expect to game at fullhd with a 5670? Put together, its simply not required.
Wd green is a lot better option than seagate one cause it consumes lesser power and performance isn't needed here. Speakers are an esssential component in an htpc so a 2.1 simply doesn't cut it. To watch movies hometheater style, 5.1 is a bare minimum.And for a good 5.1 a soundcard is necessary. Thats what an htpc is all about.
I would say instead of going for a powerful cpu or gpu, op should invest in a good panel and a nice 5.1 channel speaker set. Thats what htpc's are all about. If you wanna make it a gaming rig as well, then the scenario changes and high performance components fit in.
The panel you suggested is very good and is an ips panel so op can go for it but not sacrificing on speakers. A good 5.1 is a must have or else it won't be called as an htpc.
^^ Its ok mate. I was just clearing the air about htpc's. And 5670 will do no good than a 5570 or 5450 in hd content playback. But if op can afford it then well and good & it will raise the budget unecessarily.