I use the i3 variant of this box, in the Den. Works great with 1204. You will for now need to build either the latest libxine from SVN, or the libxine-vaapi branch, to get the necessary VA-API accelleration for speed efficient video playback, but as a media director, they work very well, and are quite silent.
Just add RAM. Don't fuck with a wifi card, hook up using the ethernet port.