For playing Blu-Ray movies in 720P and various other downloadable Hi-Def content will this cpu be sufficient. Paired with a Biostar TForce 780G Mobo and 2Gb DDR2-800. Not looking into any gaming for now. Maybe Starcraft 2 when it comes out..if ever.

Bit low on cache for my tastes. Try to get your hands on a 4200 or above.

There are no Blu-ray movies in 720p.
If you mean the torrent re-encodes of BD movies (mostly x264, single- or dual-layer DVDs) -
the CPU will be enough since most of the decoding will be done by the onboard video.