@Kasie 23:
Your build looks fine, however:
Case: You can spend $140 on an
Antec Sonata III and get a 500W PSU with it, so you save a bunch of money from the PSU.
If you don't want to spend the extra money, an Antec 900, CM590, or CM690 will suit your needs just fine, but I would definitely buy something to work as a dust filter, like a cut-up swifer pad, because those cases are dust-hogs!
PSU: The PSU you chose is fine for your system, but for about the same price you can get a
Corsair TX750W, which is overkill, but you can use it should you do another build in a few years :)
CPU: The E8400 is a great CPU, overclocks like hell, but as I (and pretty much everyone) on this forum always say, always, ALWAYS get an aftermarket cooler! They aren't much. Two great performers, the
Xigmatek HDT-S1283 for $40 or the
OCZ Vendetta II for $30 (pricematched at NCIX) will cool your E8400 substantially for years to come.
RAM: DDR2 RAM is a dime a dozen nowadays, so if you have the means in your budget, PLEASE get 4GB!
There's Plenty Of Kits Out There! VGA: If you found an XFX 4850 for $190, jump on it. It's significantly better than a 9800GT, and it's $40 more, I know, but the 4850 is better, and it's an XFX with a dual-slot cooler for great performance! =D
BTW you're getting ripped off on windows XP, you can definitely get the copy you already have installed on your new build without any problems. No need spending $200 on that, if youre gonna spend that much money on an OS you already own, you may as well get a better video card, a full-tower case, or just keep it or something :)