Hmm, I can't see how this is sufficient. I'm guessing that the 5 switches are 8 port as in the first example. Thats 7 pcs plus uplink per switch, resulting in 35 pc's having connections.
Anyways, if you have enough ports I'd recomend going with switches only as communication happens host to host (actually, switch interface to switch interface, but who cares...).
If you need hubs you should connect as few pc's as possible to each hub, then connect the hub to the switch using a hub and spoke model (one switch in the center connecting to the other switches, then connect the hubs to these switches and then finally the pc's). That way you get the most og the bandwidth.
Given your budget of 1500 though, I'd buy some cheap netgear/hawkings/linksys switches at the nearest computer chain store. For less than fifty bucks you get an eight port switch with a mac table of 1k addresses. That's 210 ports for pc's and 30 uplinks in a daisy chain (don't daisy chain though, use the model I gave above, or you might have a loop and your users will have zero connectivity).
To jihiggs: While I'm not to active on these boards I lurk enough to know you as someone with mostly good ideas. Was that Cisco comment serious? Don't lead poor dan down that road
To dan: Forget about Cisco and forget about Gigabit. Cisco is pro equipment and certainly needed for big business. You don't ask about VLANS, MPLS, trunking and such so if you don't need it, don't buy it.
Sure Gigabit is fast, but are your gamers ready to sacrifice about a GHz of processing power? Probably not. (BTW, a common rule of thumb for networking is 1Hz per 1 bps).
Alright, that was long...
Good luck,
Dev
Poor windows was not a brave soul. Threatened by the force of General Protection and Major Problem the little OS committed suicide by hanging.