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"Mid-range" HTPC

Did you also want blu-ray playback as well?
TV tuner wise, did you just want to watch OTA content or content from a cable provider?
 
The Core i3 CPUs have an onboard video chip. As such, the motherboards themselves do not have an onboard video chipset. If going the Core i3 route, you won't need a dedicated video card at al UNLESS you're watching blu-ray content. Apparently, there will be occasional skips and overall lack of smoothness in blu-ray playback with a Core i3 or Core i5 based setup due to the way the CPUs handles 23.xxx FPS, the frame rate of most blu-ray movies these days.

Oh and you chose a not-so good PSU. RAM is a tad overkill for HTPC usage.

By OTA, I mean like your local news and TV channels, not online content.

Here's another build:
$112 - AMD Athlon II X2 245 CPU + Biostar TA785G3HD AMD 785G mATX Motherboard
$82 - G.Skill F3-10600CL9D-4GBNT 2 x 2GB DDR3 1333 RAM
$50 - XFX HD-545X-YNH2 Radeon HD 5450 512MB PCI-E Video Card
$120 - Antec NSK2480 mATX case with Antec Earthwatts 380W PSU
---
Total: $364 plus tax and shipping.

As you can see, a video card is needed here since the AMD onboard video does not offer bitstreamed or even 5.1 audio via HDMI. And as you can see, it's roughly $100 cheaper than your planned setup while providing the same capability in HTPC usage and with a much better power supply.
 
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The CPU + mobo replacement would be a tad too much for a HTPC. You're just watching movies correct? I mean what else are you going to do with the HTPC to warrant a X4 640 and a 890GX motherboard?

Same question-ish for the video card as well: The GPU would be a tad too much for a HTPC. Are you actually gonna play PC games on this HTPC to warrant a video card upgrade?
 
No, I'm not going to play games at all, just watch movies and etc.

So then it's not worth the extra heat, cash, or power usage to get that HD 4850 video card. Same goes for the CPU and motherboard.

EDIT: Yeah your entire updated setup will perform pretty much exactly the same as the setup I provided in HTPC usage but costs $110 more right out of the box (if you added the blu-ray player to my build as well) as well as have higher power usage and higher heat creation. Since you're not gaming nor doing anything other besides watching movies, those added costs are not worth it at all.

EDIT 2: If you really want to stay above $500, just go with the my original setup + the blu ray drive you chose + this software:
$60 - Arcsoft TotalMedia Theatre 3 Platinum

The above software is widely regarded as the best blu-ray playback software available.
 
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Last question, what do you recommend for a "remote" control.. (IR)

Well before I can answer that question, I need this question answered: Are you planning on watching actual local TV channels on this HTPC?
 

One more question: Did you need this remote to control any other device besides the HTPC itself?

If not, then I recommend this remote:
$27 - AVS Gear GP-IR02BK Vista 2 channel IR Remote Control
 
I personally use the Lenovo Multimedia Remote with keyboard, it is often on sale for $30 shipped (regular price of $59 is to much). I also have a Logitech Harmony One for my whole entertainment system, but since I am often using my HTPC for lots of things I seem to use my Lenovo more. Might be worth checking out to see if it is interesting to you.
 
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