Cheap htpc build

[untoldxcarbon]

I want to build a cheap htpc as I'm ditching directv for hulu, netflix, and some movies i have. I have built a pc before, but never a htpc so im new to this area. I really dont know what kind of performance i need, guessing not a lot, but would like to know. I have to work with about $400 on everything. I plan on using xbmc for it. Can you give me some input as to what I picked? Also i want to make it as quiet as possible.

case- http://www.newegg.com/Product/Product.aspx? Item=N82E16811163223 $34
cpu, memory, mobo combo - http://www.newegg.com/Product/ComboDealDetails.aspx?ItemList=Combo.1245005 $145
psu- http://www.newegg.com/Product/Product.aspx?Item=N82E16817151085 $37
hdd- http://www.newegg.com/Product/Product.aspx?Item=N82E16822136769 $60
windows- $100
dvd drive- $20

Thats about $400, but i also need to buy a a mouse/keyboard and a cpu heatsink. Is there anything i can do better to save money and still have it be a good machine?

 

[Conumdrum]

Gonna have to buy Blue Ray playback software too.........

No need for a CPU HS, you will be running the CPU at low loads.

 

[NiHaoMike]

VLC can play Blurays. Also, you can cut $100 if you use Linux. (I presume you're only using it for playing media.)