It was 70$ back in July and used a 420 cpu.
Although I don't watch Bluray, this system has turned out very well.
I noticed that the cpu usage is about 24 - 35% watching xvid's.
Used 1GB at first but was getting out of memory message playing dvd's so I upgraded to 2GB.
Misterd is suggesting a good setup for an HTPC, I have something similar and so far it's working great. I am using a 780G MB + AMD 5200 + ATI 3470 GPU. It's not yet connected to an HDTV but it will soon. As for playing Blu-ray with the integrated GPU I won't comment on that since I never tried it.
I put together a system with the same CPU+Mobo as Misterd, and found it to be an excellent platform for HTPCs. I didn't have a blu-ray drive available but tested it with some 1080p .mkv files (more demanding than blu-ray, as they aren't always encoded to take full advantage of HW acceleration) and used the DTS interactive output, and was extremely impressed.
BALISTX, I got a build for you. It's the best for the cheapest I could find, unfortunately it goes OB a bit. Talk to your wife about adding $200-300 more, so that you can get a better one w/ better sound and better picture, hell, more storage too. XD