cclear,
To answer the first question, the Nvidia video card you have will support 1280x720. The problem is in OS X. I currently have a HTPC running on Windoze XP using most of tools that you list. I have a Sony 9000, 50" Widescreen monitor that I use a custom resolution to enable widescreen using Powerstrip. I also use gyration keyboard and mouse that you mention (which are excellent).
I also have a G4 that I want to turn into the HTPC for a Sony VPL-11HT HDTV projector. The ideal resolution for that projector is 1368x768 running at 56hz. I have done it from my PC with an Nvidia card, but am unable to do it from my Mac. I have a Radeon 8500 that can surely output that resolution but am unable to select it.
I have sent Entech an email informing them there would be a lot of interest from the Mac community of a port of powerstrip to OS X, but have yet to hear back from them. SwitchRes won't work as it doesn't allow you to create your own custom resolutions. For me, any frequency above 60hz will "lock" the projector into 4:3 mode. I can sucessfully project resolutions (up to 1920x1080) but the monitor locks into 4:3 mode and the output looks all scrunched.
Does anybody out there know how to hack OS X to get a custom resolution?
cclear, if you have figured anything out in the past month, please let me know. I really want to get my Mac to be a HTPC.
btw, do you have the sonica? I just ordered it yesterday. if you do, what have your experiences been? I read that Apple DVD player doesn't yet do AC-3 pass through so you have to use VLC until Apple changes their player, which I also heard that they are doing.