i was just sitting here for the last few days planning out the same kind of project..(i was also inspired by that SNES pc thread). I have been throwing around alot of ideas lately, but haven't made a choice one way or the other. here are my thoughts so far:
first of all, my goal. I currently have a modded original xbox that i use for console emulators, and to run xbmc. the xbox works great for console emulators. i absolutely love xbmc, it works really well for viewing pictures and listening to music, and handles just about any video format you can throw at it....except it chokes on hi def video. (accessing media I recently picked up a pocket video camera that records hi def .mov files, which just don't play well on my xbox. i have a ps3 and a 360 that i have been trying to use to replace my xbox, and while they have the horse power to handle the hi-def video, they don't support enough different formats (especially .mov and .mkv) and the interface is just not as straight forward as the xbmc. plus, without modification, they dont run emulators.
do be able to view my home movies, i hooked up my main PC to my projector and use a wireless mouse and keyboard to control it. THis pc is where i store all of my videos/pics/music and I also end up using RDP to control this pc remotely alot...my point is, i dont want to use this pc as a dedicated HTPC because i need it to do to many other things.
so the way I look at it, i have two options:
1. go the mini ITX route, install it in a snes or similar cool enclosure. this makes for a very cool little unit. however they are not nearly as powerful as a larger PC.
2. build a small but more versatile unit with a micro atx board. this would allow for more hardware options, and a much more powerful computer.
alot of this depends on what software you intend on running. I am leaning heavily towards xbmc, simply because it supports so many different formats and is very flexible. there is a linux based stand alone version of xbmc that apparently works very well on mini itx boards with nvidia ion graphics. the problem with that, is that linux is a pain in the butt and i dont know if i could get my emulators running properly on it. if i have to install xp on the itx system, i dont know if it will run as well. i have xbmc running on my main PC and it has plenty of power to handly hi-def video and emulators. (athlon x2 5000, 4gb ram, radeon x3400 graphics).
i have also played around with boxee, which is pretty slick as well. it doesn't handle local files nearly as well as xbmc, but it has built in support for pandora radio, hulu, and netflix....things that xbmc doesn't handle very well. i don't really need hulu, pandora works ok on xbmc, and i have a ps3 and 360 that i can use for netflix. it would be nice to have it all in one place, but i just dont see how to do that.
maybe there is other software out there that i havent tried, but as far as I can tell, a micro atx system, running windows and xbmc is probably the way I am going to go. i have to test out the built in emulator support in xbmc, but if that sucks, i'll probably set up MaLa for the emulators.
I'd really love to go with a itx system, but i just dont think it is worth with putting the money into something that is underpowered. perhaps i am wrong, and i'd love to hear someone else's opinion on the subject.
i didn't mean to hijack your thread, i just figured i'd share my thought process on this subject.
oh...and if your snes emulator requires a core2duo, then maybe you should look at a different emulator. the snes emulator on the xbox (snes9x) runs great, and it is basically a celeron 733, with 64mb of ram.