I've recently just built my own HTPC to compliment my new home theatre setup as well and have got the E6500 CPU along with the HD4350.
I've decided to keep my TV tuner card in my desktop for now so I can watch TV in my room, but in the future I may decide to get another card or move the current card to my HTPC.
It just so happened that my 4850 in my desktop died so I used my 4350 for a while before getting my new graphics card for the desktop.
What I found was that when I was watching TV3 there was a lot of lag and it would not play smoothly at all. Even though there weren't any glitches or green screens or any other problems. The CPU usage also did not increase by much when watching TV3.
So has anyone else who has a 4350 encountered similar problems, or is it something in my setup?
My desktop has E8200, with Nova 500 T, running Windows 7, PDVD 8 codec, Media Portal 1.1 beta, ATI driver version 10.3.
Would be great just to get some confirmation that it can definitely do TV3 without any lag so I know I didn't buy the wrong card.