Still overkill guys, a 2600 or newer with offload all hd video processing from the processor and ram via the UVD (Unified video decoder). Ex: My htpc has a Turion ml-37 (2.0ghz single-core) with 1 gig of ram and a 2600 pro passive - it plays all my hd videos smoothly (both vc-1 and h264). So with a 2600 or newer video card from ATI you should all set and not have to worry about spending lots on the rest of the system.
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