Hey Frank, The config is fine except for the power supply. Like other suggested get something better. I say go for Corsair CX400. I got 3 of these for my friends at the same time. Got them for Rs.2500 + 5% VAT each.
It is a 80+ certified PSU and Corsair has good name for reliability.
Plus they are quiet. I guess noise will be an important factor for you, since you are building a HTPC.
4. Gigabyte Superb SMPS (Rs. xxxx. Price not yet known)
This will thus be added to my new 2 TB Internal Hard drive + Creative XFi Fatal1ty Pro XtremeGamer sound card + Sony SATA DVD writer + VIP Cabinet + Panasonic S10 FULL HD television.