Will this handle Blu-Ray?

Ok, so I've got this bog-standard HP machine from 2005, on which I am currently running Vista Home Premium Media Centre:

HP DC7600
With the slight difference that it has 3Gb of mid-low-range DDR2 RAM installed.

We use it for all our media stuff in the flat (recording Freeview (2 tuner cards), watching DVDs, listening to CDs/MP3s, streaming all this content to our xbox 360s) and it handles everything perfectly with no fuss.

Rather than waste money on yet another box to sit under the telly, I thought I'd replace the current DVD drive with a blu-ray drive.

The thing is, I'm not sure if this thing has the punch to run hi-def content.
Our TV is only a 720p jobby (running off the VGA port), so it's the lower end of HD, but still....would this machine be a competent alternative to a dedicated blu-ray box? I'm guessing the onboard 945G Intel Xtreme graphics chipset would be the limiting factor here?
Annoyingly, I can't put a beefier gfx card in due to the SFF nature of the case, and where it needs to fit.

Cheers for any suggestions.

720p will work nicely enough I should think, netbooks can handle that running similar hardware. 1080p will probably be a bridge too far.

1080p it will definitely struggle, may be add a GPU that have blu-ray acceleration?

Ok cool.

Can you recommend any half-height cards that will do the job? It's got a PCI-E slot.

Cheers guys :)

HD3450 will do nicely or an HD4350.

A lot of them are half height but not all come with a half height bracket.

Over at scan sapphire 4550 passive if youve got reasonable airflow, its 1/2 height and comes with a bracket.

Hawker

Just realised I forgot to reply to this!

Cheers for the help guys!
Airflow is a bit of an issue with this chassis, but I might be able to mod it with a drill and other power tools, mwahahaha!