Ok, so I've been contemplating, a custom HTPC, but instead of being in a regular case, how about a old school VCR: the pioneer of old school home entertainment? I'm not sure if this has been done before, or even if it has, has it been done with the same thoughts I have in mind?
I would like to build a system that has HD video support, HD audio support, and of course recording support... I just need some help and ideas for how I should go about this and as I know this is by far the best place to go for help on this type of thing. So any suggestions good priced motherboards, processors, HDs, parts...etc would be great as I am just contemplating this like I said.

Some things I've considered-

Is a processing power really a issue? Could I probably get away with most of these features and play movies and record and playback pretty decent on a relatively cheap AM2 set-up or an old Socket A Micro Atx I have lying around.

Itx mother boards: great size, nice integrated features, cool running temps, lower power consumption decent support, but a little short on processing power and performance side, rather pricey..

Micro atx motherboards: Less pricey, better performance possibilities, still good integrated features, but a little harder to fit into a average VCR case, generally higher running temps and power consumption.

Harddrives: Should I run a notebook hardrive or a desktop harddrive? Probably a better question when it come to the room I have.. although I would rather have a desktop harddrive do to the higher performance and lower price..

Power Supplys: same thing as the harddrives. probably better answered when size is able to be considered.

so LMK what you guys think..