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how would this rig run as a htpc?

Too weak for my tastes. Weak CPU, and the graphics are uber basic. As a file server, it would be fine, but there's a reason it's $150.
 
It wouldn't be so bad ... hard to say how loud it might be.

You would need to purchase a DVD drive, a $20 5.1 sound card (with optical out to pass audio to your receiver it that's your thang) and find an AGP card which can off-load h.264 from the cpu and give your video a boost. Counting your tuner card you could be in for less than $350.

I'll also wager that there are most likely some pretty good deals out there this week on a 'home-theater-in-a-box'
 
Most business machines aren't designed to be super quiet. I'd be more worried about ambient noise after I upgraded all the components.
 
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