I would not get an AM2 board. I got and AM2+/AM3 board so I can future proof my system. As far as budgeting goes, AMD all the way. My Phenom X3 with Stock Fan was only $74.99. You can get an AM2+/AM3 board for $60. RAM is so cheap you can get 4gb for like $40.
I reccommend the Phenom X3 or X4 series for the money.
If you have to get the AM2, go for the FX-62.
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Formerly ComputerGuru64x2
CPU: AMD Phenom X3 AM2+ 8650 @ 2.5Ghz
MB: Gigabyte GA-MA78GM-US2H mATX
GPU: ATI Radeon HD3200 512Mb @ 950Mhz
RAM: Mushkin XP Series (2X2Gb) DDR2 @ 1066Mhz
HDD: Western Digital 80Gb SATA
SC: Creative Sound Blaster X-Fi Xtreme Audio
OD: LG DVD-RAM Sata
CASE: nMediaPC Black mATX HTPC 200
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