What graphics card for HTPC and old system?

[DieselPUmp]

I'm getting a 42" 1080p LCD soon and I want to be able to use my computer as an HD HTPC.

I'm wondering if I can just upgrade to a newer graphics card and keep the rest of my system as is.

I currently have:
Asus A8N-E mobo
AMD 3700 oc to 2.7ghz
2gb samsung ram
evga 7900gt oc'd
600watt seasonic s12 power supply

I'm going to be getting the LG GCC-H20L to run blu-ray and HD dvds, so I'm wondering if I can just get a newer gen video card to be able to play them as well as x.264 files on my comp.

I don't care about price really, as I'm sure it would be pointless to get one of the higher end cards with my system specs. So whatever is suggest, I'm sure will be a reasonable price.

I'm in Canada and looking to do this in the next couple of weeks.

Thanks for the help.

 

[Slugbait]

For 1080p playback of HDCP discs, nVidia doesn't offer anything in AGP.

If you want HDMI, I believe the 2600XT is your only choice. If you only care about dual-link DVI, you can go with the 2600Pro. However, note that AMD doesn't support these cards any more...you'll likely have driver issues, possibly major. Omega drivers appear to work for those who can't get the cards working with AMD drivers.