Glad you got it all up and running ok Mark,which graphics card did you go for in the end?
I am a little puzzled by your latest query.
Do you mean to have it like a "stand alone dvd player" on your TV
If its just a second PC purely for watching DIV X films then we need to know the minimum specifications that it requires.
I watched them on my old 450 so I dont think that the CPU needs to be a superfast one but obviously a decent graphics card would be necessary for improved quality of the films