Yeah, that setup would work just fine. *Considering he knows how to put in a graphics card* Other than that, the ATI chipset is the only thing that bothers me. Not much of a issue but I've just had problems with ATI chipsets.
Case: Thermaltech Tsunami
CPU: AMD Athlon 64 Processor 2800+
Mobo: DFI LanParty UT nf3 250gb
Memory: 1 gb G.Skill PC3200
HD: 74gb WD Raptor/120gb WD Caviar/500gb WD Caviar
GPU: NVIDIA GeForce 6800 GS/XT