After a LOT of research and playing around with the micros and ARM's I have on hand I came to a major conclusion....  They all pretty much suck for doing Component Video out and still having enough space to handle the Capacitive Touch, Sound, battery management, etc... that I have planned for this project.

For that reason alone I'm going to give the Parallax Propeller a try for this project.  The price of the DIP version is just $8 (easy to keep in my budget), Composite Video is built in (as well as many other video types), Capacitive Touch should be easy to implement (There is an Object for that), and (most importantly) I've never used the Propeller before.

So, with that in mind here is my revised approach to the project:

• A cog for doing video
• A cog for touch
• A cog for sound
• A cog for the SD Card that will hold the actual programming
• Utilize Catalyst to bring it all together
• Utilize an existing scripting language for programming (probably Lua or Basic since they are built in to Catalyst)

What that means is that so far I've allocated $15 to the display and $8 to the processor for a total of $23 out of pocket for the hardware/compute side of things.  Other parts that need to be taken into consideration of the remaining $7 are; an SD Card for programs, the Case, display overlay (protection), the "Touch Panel", sound system, and a few other odds and ends...

That's a lot to fit in $7.  Let's just hope that when the display arrives tomorrow there are some good parts that I can cabbage out of it to make this project a success on budget.