Can this MacMini (2007) handle streaming HD video?

I'm looking at buying an used MacMini (2007) to act as a dedicated media server. I want to make sure the one I'm looking at can properly handle HD video streaming.
It's a 2007 model with the 1.83 ghz Core 2 Duo processor and 2gb ram upgrade.
I'm nervous because the 2.0 ghz macbook I've had for years has trouble streaming HD video. But that computer has been overheating and slowing down allot for the last year or so. Barely functions anymore.
Thanks, Apple Community.
-Aaron

Thanks for the replies. You guys are great here.
I figured out what the problem was... or at least well enough to be able to fix it. A while ago, I had been converting the mkv files to m4v, like you do, but iTunes didn't seem to like them, even though it did accept them (sometimes it would corrupt the files). So, yesterday, I decided to convert one of the mkv files using Quicktime with the "Movie to AppleTV" option. I added the file, without copying it, to iTunes, and pointed it to the file on the TC. Voila, it plays on AppleTV beautifully.
So, for some reason, iTunes and ATV do not like the other converted files. Most of them I converted in Quicktime with the proper settings to convert it to mp4, so I don't know why there is an issue. I've used HandBrake, as well. Anyway, I'm glad the files will stream from TC if they are converted a certain way.
But while we are on the subject, does anyone know of a way to convert it for AppleTV like this but still have it be able to go on iPhone, too? iTunes always says that the file type is not supported on iPhone, even though it is a H.264. If I use HandBrake to convert for iPhone/iPod Touch, then that of course works, but I'd rather not have two types of each file.

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