Well looks ok.
But i would get a NEC dvd writer as i have heard that these are the fastest and the best but i suppose it really makes no difference.
If your gonna play games a would deffinatly recommend getting a AMD Opetheron or a dual core Athlon. These are better than the Athlon 64's in many ways and aren't much more expensive. And AMD processors are way better for games than intel. But if you do stuff like video editing then the intel processors have the raw power. I would say that dual core has a future but at the moment it's not really worth the extra expense. But if you wanna invest in the future go dual core.
You would have to change the mobo if you went to AMD so get the same one you already have except in socket 939.
If your overclocking go for some overclocking RAM and if you go AMD then your'll need to get DDR RAM not DDR 2. I would say that the best RAM manufacturer is corsair. And I would get 4x 512MB RAM modules and run them in duel channel mode as this would be faster than 2x 1GB. But if your gonna add more RAM in the future then stay with 2x 1GB chips.
If your overclocking i would recommend using air cooling or get watercooling with a radiator with fans on. The water tower would be good enough if you don't overclock and it has no fans so no noise
but if you want better cooling get a raditor with fans on as these don't slow the water flow as much as a water tower and cool it better but then theres noise
But if you want cheap cooling with noise air is the way to go.
The PSU doesn't need to be so powerful for your system especially if your not overclocking. 500W should be plenty for your system if you overclock it otherwise 400W would be fine. And consider getting a passively cooled one if you go with the water tower. So then theres no noise.
The hard drive doesn't really need to be 10000 RPM as your system wouldn't really utilise the extra speed much but it's mainly up to you.
Other than that it looks great. I'm just saying this out of experience but the one you have currently would run a treat i was just suggesting things to save you money and maybe it run faster.