In theory yes... In reality you might better look at an Athlon XP, or even better a Sempron (S754)... But as long as it can be cooled quietly, you have the basics for a HTPC...
@ Raduque: I had to ask that question too... D*mn...
I tend to think in terms of Windows MCE, which needs a pretty beefy cpu/ram/vidcard combo. I keep forgetting about Beyond, Myth and so on. If it's a faster p3 (1.3 tualatin, or severely OCed celeron tualatin) you might be able to get by with it.
My first Media Center PC was an Athlon 1200 and I would consider that the bottom end. It was usable, but I had to disable GUI animations in Media Center and it felt sluggish.
Both my current MCE systems are running under Athlon 2000+ CPUs and performance is great.
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