Multimedia Pc

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The biggest issue with a media pc is storage. You can probably get a decent AMD with on board video and 1-2tb of storage with that budget.
 
Just something that is HDCP compliant and can play back 1080p and Blu-Ray.

I'd get a cheap AMD CPU and any board that has a 780g or 785g board. (the IGP HD 3200 is really solid).
 
$700 will easily get you a good HTPC build. Vernong hit it right on. Ironically the most expensive component in HTPC builds is the case. You could be $400 right off the bat for a nice case. If you look at the specs in my sig you'll see what I built. It has been a really solid machine and I'm very pleased with it. The 790gx is a great chipset and the HD 3300 is plenty for 1080 playback. I can even play some games on lower settings...more than that would require discrete graphics.
 
Heh, thats why i didnt suggest any board, i couldnt remember which amd board had the right video card. For another 70 or so you can get the LG drive that plays HD-dvd and burns BD.
Newegg.com - LG Black 6X BD-R 2X BD-RE 16X DVD+R 6X BD-ROM 4MB Cache SATA Internal Blu-ray Burner 6X Blu-ray Disc Burner & HD DVD-ROM Drive Model GGW-H20L - Blu-Ray Burners
Although it looks like they might have finally sold out of them. I have that drive in my media pc and so far its been great (after i figured out why it wouldnt work).
 
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