Need feedback on proposed HTPC

I am currently looking to build an HTPC and would like to know your opinion of my proposed system. Keep in mind I am on a tight budget, so it is not the best possible option out there, but I believe it will be good for what I need. Please answer my questions.

MB: GA-EG41M-S2H
http://www.gigabyte.com.tw/Products/Motherboard/Products_Overview.aspx?ClassValue=Motherboard&ProductID=2945&ProductName=GA-EG41M-S2H
Q. Will the onboard HDMI transmit Audio as well as the video to my HDTV without the need for an SPIDF In/Out connection?

CPU: E5400 (2M Cache, 2.70 GHz, 800 MHz FSB)
http://ark.intel.com/cpu.aspx?groupId=40478

HDD: Seagate SATA 1.5TB

RAM: 2GB 800 Kingston

DVD: LG SATA

CASE: Antec NSK1480
http://www.antec.com/Believe_it/product.php?id=MzE=

TV: Leadtek DTV1000S
http://www.leadtek.com.tw/eng/tv_tuner/overview.asp?lineid=6&pronameid=382
Q. I am aware the card is compatible with VistaMediaCentre, but will the accompanying remote be able to navigate through VMC, forward through videos, pause etc. (functional in MC).
Q. Does this card record in H.264 codec?

Feel free to add any comments or suggestions about the proposed system.

MB: GA-EG41M-S2H
http://www.gigabyte.com.tw/Products/Motherboard/Products_Overview.aspx?ClassValue=Motherboard&ProductID=2945&ProductName=GA-EG41M-S2H
Q. Will the onboard HDMI transmit Audio as well as the video to my HDTV without the need for an SPIDF In/Out connection?

A. I believe so because one of the audio specs says HD audio so...

Q. I’m not looking to play games, so will the onboard HDMI be good enough to play Full HD 1080p Video?

A. From the page you linked to "8. Integrated HDMI/ DVI interface for Full HD 1080 Blu-ray playback with HDCP"

Q. What’s the deal with TrueHD audio with a board like this or any HDMI graphics cards out there? I don’t think they are TrueHD yet, is there any way to future proof such a system?

A. Well I don't really know either but if you're playing Xvids then the audio is compressed anyway so I dont think it will matter much.

CPU: E5400 (2M Cache, 2.70 GHz, 800 MHz FSB)
http://ark.intel.com/cpu.aspx?groupId=40478
Q. Will this CPU fulfil my High Def needs? (Keep in mind tight budget)

A. I think it will but for $20 more you can get the Intel Core 2 Duo E7400 Which is alot better

HDD: Seagate SATA 1.5TB

RAM: 2GB 800 Kingston

DVD: LG SATA

CASE: Antec NSK1480
http://www.antec.com/Believe_it/product.php?id=MzE=
Q. Will 350W be sufficient for the proposed system?

A. Yes it will be fine. IMO I think you could go a little cheaper on the case but as its a personal choice it's yours to make. 3 cases for under $50

TV: Leadtek DTV1000S
http://www.leadtek.com.tw/eng/tv_tuner/overview.asp?lineid=6&pronameid=382
Q. I am aware the card is compatible with VistaMediaCentre, but will the accompanying remote be able to navigate through VMC, forward through videos, pause etc. (functional in MC).

A. Well What I can say is that the remote that came with my case does in fact work well with MC but I found myself having trouble navigating so I got me a snappy wireless keyboard with a trackball for a mouse
http://base1.googlehosted.com/base_m...55b00a53&hl=en

Q. Does this card record in H.264 codec?

A. Not a clue when it comes to TV cards as I never owned one sorry :(

Just to clear a few things up, I checked out the user manual for the motherboard and I dont think you need SPDIF...

HDMI Port *
The HDMI (High-Definition Multimedia Interface) provides an all-digital audio/video interface to
transmit the uncompressed audio/video signals and is HDCP compliant. Connect the HDMI audio/
video device to this port. The HDMI Technology can support a maximum resolution of 1920x1080
but the actual resolutions supported depend on the monitor being used.
*
Please note the HDMI audio output only supports AC3, DTS and 2-channel-LPCM formats.
(AC3 and DTS require the use of an external decoder for decoding.)
In Windows XP, select Start>Control Panel>Sounds
and Audio Devices>Audio, set the Default device for
sound playback to HDMI Device.
In Windows Vista, select Start>Control Panel>
Sound, select Digital Output Device (HDMI) and
then click Set Default.