I would use the E4300 since I already have it.
![Very Happy :D](./images/smilies/icon_biggrin.gif)
Same goes with the motherboard and memory.
I would throw a slot load DVD drive in there too, but I forgot to list it. I don't think we'll see slim slot load HD-DVD or Blu-Ray drives around and at reasonable prices for quite some time, but it would make a nice addition at some point.
Since this case doesn't seem to have much ventilation, getting low power components in there is going to be key I think. Otherwise, you'll probably have to run some fans at high RPM to expel all that heat and you probably wouldn't be looking at these forums if you wanted that
![Smile :-)](./images/smilies/icon_smile.gif)
. The picoPSU should help by removing the PSU's heat and freeing up some more air space in there. Avoiding expansion cards should help too.
I have no idea how much is too much though in terms of processor power. The E6400 might be okay. I'm certainly hoping the E4300 is okay. If I were getting a new processor, I would probably consider the E8000 series. Those 45nm parts use quite a bit less power, which should translate to less heat.
That motherboard looks good, though those DOA comments are disconcerting.
You could look at the AMD route if you haven't already. You'll probably get better idle power consumption with a 690G board and BE-series processor. You might even save money. Of course, if you plan to leave your computer in sleep most of the time like me, the better efficiency of the Intel processors might come in handy.
Earlier I mentioned I was looking at the Hiper CPU cooler, but after looking at the pictures of it more closely, the heatsink doesn't seem to have much metal on it, so I'm a bit weary of what its performance might be versus the cooler that comes with the case. I wonder if there are any better options out there for ultra slim CPU coolers.