What is all this talk about ONE video card?
And no RAID? Waitaminuute! A single hard drive?
XP "Home"?
Inter (twitch)-grat (twitch) -ed vide(twitch) o?
Also, I did not see case, cooling system, or power supply listed.
Agree with most above:
1GB minimum RAM, 2 GB better.
Not-no-way that motherboard.
VRAM important for eye candy... each of my cards has 512MB, and system is 2 years old.
With the right CPU and Motherboard, dual hard drives running RAID-0 can really work well for game system. My 2 - 74 GB SATA's at 10,000 rpm do well, and I've external hard drives on network for bulk storage, music, and video.
The more you are trying to save on what is supposed to be a game system, the more research you will need to do to get the right components for the right price. Computer Shopper, PC Gamer, and CPU magazines run articles on the subject occasionally, and recent ones should be search-able on some online database. Then there are places like
http://www.newegg.com