Everyone is always concerned about CPU, motherboard, memory, hard drive, graphics card speeds. The biggest concern for 99% of users is the price, the system chosen above will handle anything you are going to do at College. What course are you doing at college?
For video/graphics editing I suggest an Intel system, they are a lot faster at encoding/decoding.
There is nothing wrong with the system in your first post, the CPU can be upgraded from the Athlon 64-bit 2800+ (1.8GHz) to AMD Socket 754 Athlon 64 3700+, 2.4 GHz, 1MB L2 Cache 64-bit Processor - probably get your hands on a 4000+ in a couple years.
[size=0.5]Full Aluminium ThermalTake Case
AMD Athlon XP 3200+ *400 FSB* Barton (2.2GHz)
ThermalTake Volcano 11+ Xaser Edition Air Cooling
1024MB Corsair TwinX XMS 3200 (Dual Channel 2x512) 2-3-2-6
256Mb XFX 7800 GS EXTREME
2x WD Raptors (10krpm 8MB Cache) 36.7GB using RAID -0
Video Logic SonicXplosion 5.1 Soundcard[/size]