Have since moved sunfire 11" next to the speaker in the pic, and ditched the Dish network box for a zotac ion w/1gb ram running xbmc off a 2gb usb flash drive. Haven't fixed resolution issues yet, but plays 720p fine so far.
1 cpu/gpu fan in the htpc, but fishtank near the setup is way louder than the fan so whatevs.
edit: htpc is on gigabit network, with content on a ubuntu 9.10 system with 3 2tb drives.
If you still have resolutin issues i could pass you my X11.conf
I put the Zotac FAN to 3V (change yellow and red cable on the plug) and its really quite now.