The graphics board is a crucial component in my setup, since it's going to take over much of the HD playback from the processor. In just the past several months, graphics boards have taken a giant leap forward in quality while prices have dropped.
You don't have to choose an ultra-high-end board: In fact, such models tend to generate excessive heat. I picked the ATI Radeon HD 3450 graphics board because it meets my other needs and doesn't require a fan for cooling. This board lacks an HDMI port, but it works well with any DVI-equipped HDTV.
Graphics board price: $50
System subtotal: $1415