Multipurpose HTPC - Solving Problems

If you read my last post Multipurpose HTPC - The Problem, you know that we are migrating our computing needs to two disparate system types. My wife just purchased a HP netbook, the HP Mini 1035NR 10.2-Inch Netbook (1.6 GHz Intel Atom N270 Processor, 1 GB RAM, 60 GB Hard Drive, XP Home) It is extremely nice hardware, and the nearly full-size keyboard is fantastic.

I also got a smoking good deal on a 25 inch Hannspree LCD monitor, which is slightly smaller than we wanted, but for $250, I thought it may be good enough to get us by until the price of 28 inch machines comes down a bit more. Then the 25 will make a handy second monitor for my MacBook Pro.

With the monitor costing only $250, my goal of creating a multipurpose HTPC for under $900 may be achievable. I still have $650 to build the box itself.

Multipurpose HTPC - The Problem

Perhaps the situation is odd because I'm a developer. My wife is not computer saavy, but uses a home computer extensively for several hours each day. She uses it for organizing the many non-profit events she's involved with, she uses it for communication, she uses it for entertainment. Years ago I built her a very nice desktop PC that served her needs nicely. For a couple of years now, she's been primarily using one or another of my cast-off laptops, which have also served her well.

First Problem : In the past year or so we have both migrated almost completely to hosted applications for our basic communication and organization needs. By "hosted applications", I primarily mean Google Apps. My employer uses it, our church uses it, I use it personally. What that means is that connectedness is paramount for organization. My wife has now decided that she *needs* a netbook. She is quite taken with the Acer Aspire One (in blue). I am certain that a netbook will, in fact meet 90% of her computing needs. But what about the other 10%.

Second Problem : I recently read a review of the Planet Earth series from BBC on one of my favorite programming blogs. In the review, Steve Atwood contends that "but this is a series that demands to be seen in its full high definition glory". Bur...I don't have a HD viewing setup (gasp!). In fact, all I have is a 12 year old Sharp 27" TV and a second hand DVD player. I know, my techno-geek friends lower their heads in shame. Despite the shamefulness of the situation, I am willing to fess up, and consider how I may rectify this oversight on my part so that I may indeed view this series in its "high definition glory".

Proposed Solution : So my solution is twofold. First; find the cheapest netbook that will meet my wife's needs; and purchase it for her. Second; build a solid, multipurpose, home theater-capable PC. By multipurpose, I mean I'd like it to serve as a desktop computer as well as a HTPC.

Needs for HTPC:
- View DVD and Blu-Ray content without drama.
- Reasonable audio, surround sound capable would be nice.
- Capable of light gaming. Zoo Tycoon, Nancy Drew, etc.
- Light video and audio editing.
- Streaming video.
- Remote control would be cool.
- Reasonably large display - probably 27" minimum. 1080p capable.
- Less than $900 total cost.

Probably the most difficult constraint listed is the price tag, especially considering that I'm expecting to pay well over half that amount for the display itself. Notice that I am not hung up on operating system, and I do not want/need a TV tuner card.