Should I go with AMD or Intel?

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If the most demanding game you'll run is CS 1.6, you could run it easily on an AMD 780G motherboard. And you don't need an extra video card.
The 780G has a DirectX 10.1 GPU that can be used for HD video decoding, and you'll easily be able to run your HDTV on it.
Newegg.com - ASRock A780GXE/128M AM2+/AM2 AMD 780G ATX AMD Motherboard - AMD Motherboards

an X2 5600+ is cheap and more than enough for Photoshop
Newegg.com - AMD Athlon 64 X2 5600 Brisbane 2.9GHz 2 x 512KB L2 Cache Socket AM2 65W Dual-Core Processor - Processors - Desktops

Probably RAM would be a lot most important for system responsiveness, so get 4GB (it's cheap), and disable paging file.
Newegg.com - G.SKILL 4GB (2 x 2GB) 240-Pin DDR2 SDRAM DDR2 1066 (PC2 8500) Dual Channel Kit Desktop Memory - Desktop Memory
 
Didn't notice this got more replies, thanks. My bro got his taxes today, so I'll be ordering the parts very soon today. Quick CPU question before I order, the 5400+ BE isn't there anymore, but I saw that this available now Newegg.com - AMD Athlon 64 X2 7750 Kuma 2.7GHz 2 x 512KB L2 Cache 2MB L3 Cache Socket AM2+ 95W Dual-Core black edition Processor - Processors - Desktops how would that compare to my original choice Newegg.com - AMD Athlon 64 X2 6000+ Windsor 3.0GHz 2 x 1MB L2 Cache Socket AM2 125W Dual-Core Processor - Processors - Desktops ? The BE is just .3ghz slower, but is 65nm(better?), has L3 Cache(better?), has a higher HT 3600mhz, comes with heatsink and is slightly cheaper. - No overclocking will be done on this PC.
 
AMD = Another Major Disaster. Stick with Intel.

Why is your name PH3NOM then lol.
AMD is fine, i have a 7750 kuma (just got it), and on stock cooling and heating it's OC'ed to 3.1 ghz, on load at around 61 degrees C. It can play crysis (warhead) on 790gx IGP on mainstream 1024*768 fine.

I'm not saying that you should/need to overclock, but that's basically what you are intended to do with this CPU.
 
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