I'm going to disagree with several things others have posted here as there are some outdated recommendations based on the way things were (even as recent as a month ago). HTPCs are a very fast moving target these days. There are a lot of new parts that have changed the game or will be over the next few months.
The best place to go to keep up is this thread on AVSForms:
http://www.avsforum.com/avs-vb/showthread.php?t=940972&page=401
renethx puts out a new set of build recommendations every few months.
The new Intel i3 systems with built-in HDMI and bitstreaming audio support are the best options out there for most builds now. You don't have to get a dedicated graphics card (unless you plan on doing gaming). The on-CPU graphics card works great from all the reports (this isn't to say there aren't some issues but most are minor and people have had or are currently have these same kinds of issues with dedicated graphics cards).
I just ordered the new parts for my build and it is similarly priced to what you just spec'd but it will use less power at idle and load plus be a more powerful/update to date system.
Intel Core i3-530 Clarkdale 2.93GHz LGA 1156 73W Dual-Core Desktop Processor Model BX80616I3530 - $124.99
http://www.newegg.com/Product/Produc...-222-_-Product
(I purchased mine for $105 + free shipping from Ewiz.com. Use coupon code CUPID14, ends 2/4)
COOLER MASTER GeminII S RR-CCH-PBU1-GP 120mm Sleeve CPU Cooler -$31.99
http://www.newegg.com/Product/Produc...-046-_-Product
(You might need to get the 1156 retention bracket. Some people are saying that it already comes with this but I have yet to confirm this. I should know once I put this together at the end of the week. If you want purchase it then here is a link:
http://www.newegg.com/Product/Produc...-076-_-Product )
ASRock H55M Pro LGA 1156 Intel H55 HDMI Micro ATX Intel Motherboard - $94.99
http://www.newegg.com/Product/Produc...k%20H55M%20Pro
G.SKILL 4GB (2 x 2GB) 240-Pin DDR3 SDRAM DDR3 1600 (PC3 12800) - $104.99
http://www.newegg.com/Product/Produc...2800CL9D-4GBNQ
SAMSUNG Spinpoint F3EG HD203WI 2TB 32MB Cache SATA 3.0Gb/s 3.5" Internal Hard Drive - $179.99
http://www.newegg.com/Product/Produc...pinpoint%202TB
Enermax ECO80+ 400W EES400AWT - Modular Power Supply - $79.99 (You maybe able to find this cheaper than at Newegg)
http://www.newegg.com/Product/Produc...0W%20EES400AWT
LG Black 8X BD-ROM 16X DVD-ROM 40X CD-ROM SATA Internal Combo LG Blu-ray Reader & 16X LightScribe DVD±R DVD Burner - $85.49 (10% off coupon)
http://www.newegg.com/Product/Produc...82E16827136162
Anyware GP-IR01BK Windows Vista MCE Remote Control External IR Receiver and Remote - $23.49
http://www.newegg.com/Product/Produc...&Tpk=GP-IR01BK
There are a lot of options here. The main reason for recommending this remote is that it comes with an USB IR receiver. You can combine this with any remote and it should work great.
SILVERSTONE Black GRANDIA GD04B Case - $109.99 (This is currently on backorder at NewEgg. They are replacing this with the GD05 and it may be the same price).
http://www.newegg.com/Product/Produc...63158&Tpk=gd04
There are a ton of cases out there. I think this line is the best case based on overall size (small but big enough for full height PCI-Express cards), look and price (some cases are over $200).
Total: $815.92
If you want to save some money here are a few recommendations:
G.SKILL 2GB (2 x 1GB) 240-Pin DDR3 SDRAM DDR3 1600 (PC3 12800) - $64.99
http://www.newegg.com/Product/Produc...2800CL9D-2GBNQ
SAMSUNG EcoGreen F2 HD154UI 1.5TB SATA 3.0Gb/s 3.5" Internal Hard Drive - $109.99
http://www.newegg.com/Product/Produc...82E16822152175
or
Western Digital Caviar Green WD15EADS 1.5TB SATA 3.0Gb/s 3.5" Internal Hard Drive -$109.99
http://www.newegg.com/Product/Produc...82E16822136351
CORSAIR CMPSU-450VX 450W - $59.99 (after rebate)
http://www.newegg.com/Product/Produc...003&Tpk=VX450W
LG DVD Burner Black SATA Model GH22NS50 - $23.99
http://www.newegg.com/Product/Produc...82E16827136167
If you go with all the money saving options I listed above (except the DVD) then the cost is $685.92
The last thing is using your device as a DVR (Tivo) replacement. This is one of the best uses of an HTPC, in my opinion. If you want to record stuff that isn't Over The Air (OTA) then I highly recommend waiting for the new Ceton card to be released (it should be out March 31st). Most non-basic (and even all basic, depending on your cable provider) channels, including all HD channels, are encrypted. This means you can't record them with the clear QAM device, like those recommended above.
The new Centon card will be able to record 4 streams at once with a M-Cable card. It will retail for $399. I know this seems like a lot but many of the old ones (that have pretty much been discontinued) only supported 1 stream and cost $200-$300 each, plus the monthly cost of each additional cable card).
More details are available on this website.
http://www.cetoncorp.com/buy.php