Here's what I ended up going with
MB ASROCK|Z68M-ITX/HT Z68 LGA1155 R
HTPC CASE SILVERSTONE GD05B RT
SSD 32G|PATRIOT PT232GS25SSDR R
PSU ANTEC| EA-380D GREEN RT
MEM 4G|GSKILL F3-10666CL9S-4GBRL R
CPU Intel I3 Sandybridge 2100
Costco had 3TB Mybooks USB3.0 drives for $109 last week. I got 2!
With Windows 7 on a 42" Panasonic Viera
It's been great. With 1yo twins, its hard to find time to get everything setup in one shot, but I've been slowly getting there.
Pics Below
http://flic.kr/p/aHrtEX
http://flic.kr/p/aHrtH4
http://flic.kr/p/aHrtKH
next steps to be setup sabnzbd and slickbeard etc...