recommend some hardware please!

Im thinking about building a media center pc, i just completed an upgrade to my desktop and have a few extra parts i want to use. primary use would be 720 and 1080 video and maybe valve games for fun.

cpu - e6400
memory - 4x1 gig valueram pc2 4200
video card - 7300le (pretty sure i need to upgrade this?)
psu - antec 500watt

thats all i really have right now, it would be nice to get everything in a small case maybe like this
http://www.newegg.com/Product/Product.aspx?Item=N82E16811144145

so if you can answer a few questions for me that would be awesome!

1. Is my cpu powerful enough for 1080 playback?
2. Do I need to upgrade my video card?
3. Will the slow memory be a problem?
4. Can you recommend a couple micro atx motherboards?

Thanks in advance!

p.s - my new build is in my signature!

A nice G/P45 based m/b and a Nvidia 8400 or more or an ATI 4300 or better series. Faster memory for sure. CPU should be fine.

I just finished building a HTPC as well. Something that I did that you might try is looking on ebay for cases. I got a pretty small pretty nice case off of there for like 20 bucks. Just my .02 though.

you best bet/option is to get either a Intel G45 mobo or a nVidia 9300 chipset mobo. you do not need extra video card w/ them. both has good hardware acceleration for most HD codec, and will have no problem to play 1080p Bluray movie.