I am also building a HTPC with something similar stuff in mind:
Do look at the following:
Gigabyte GAMA785G MT -UD-2H Mother board
AMD Phenom II X2 - 550 Processor
Bundled price around Rs 12000/=:lol:
RAM =1GB x 2 ,1333Ghz DDR3
Around Rs 4000/=
Sony BR Reader Combo:
Around Rs 6500/=
The mother board has a slew of connection and it passes HD audio directly on Board thru it Realtek 889A chip and video is thru on boad graphics also.
In addition to above, you can look to buy a 1TB HDD and you are on eway to oewn a HTPC.
I am currently collecting the stuff and would be assembling it anyday....