I am really sorry that I haven't updated this thread with my progress.
But here is is:
The Abit AN-M2HD works quite well with LMCE. Both HDMI and VGA worked
fine. There are two things to note:
1. The nvidia-driver included with LMCE0704 is not compatible with
the on-board GPU. That can easily be fixed by following these instructions:http://www.phoronix.com/forums/showthread.php?p=10398
Edit: If you install the drivers before installing LMCE over Kubuntu, you
will have to install them again on first boot. Seems like LMCE overwrites
the drivers on installation.
2. Menus will flicker when using UI2 with transparency. This seems to
be a problem with the driver for the 7050 chip: http://forum.linuxmce.org/index.php?topic=1897.0
UI2 w/o transparency works fine, however.
Unfortunately I have to admit that I came across Media Portal which
suits my needs better than LMCE. My wife and I like to watch TV
shows, and Media Portal has a very nice plugin for that. So I'm sad
to say that I've stopped using LMCE altogheter, but have saved room
on the hard drive just in case I want to try it out again at a later time.
As a sidenote: I've been using the VGA output instead of HDMI. When
using the HDMI cable, Windows will disconnect the TV whenever I turn
the TV off. When I turn it on again, the hardware is redetected, but
the picture will sometimes be shifted a bit to the right. I have to jump
through some hoops to get it back to normal again. This is not an issue
when using the VGA cable. I doubt this would be a problem in Linux, and
I hope there's a way to disable this feature in Windows as well. But in
the meantime the VGA cable does the job wonderfully, and I am very
happy with the setup