Im still using an HD5450 and a 3 core athlon II with xbmc, its been serving me well, although not effiiciently. If I had to upgrade today I'd do the e-350 route too I think. The motherboard would be personal preference, I'm guesing you want the E35M1-M because its one of the only micro atx instead of mini itx and you already have a micro atx case? cheap ram makes sense to me for what its doing. The PSU I know nothing about, I probably wouldnt choose until I had a case, I think many of of the mini itx cases already have PSU's in them. For fanless your really limited.
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