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.