I saw this HTPC case for $599 while browsing today. It looks like this, coupled with a mini or an ATX board would make for a good home theatre experience.

Link :: http://www.htpcnews.com/main.php?id=x15
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MacBook 2GHz Intel Core 2 Duo w/ 2GB DDR2 RAM & 120GB SATA 5400RPM HDD
Canon Rebel XTI
Google Cr-48 Beta Laptop