sound config + new rig...prospects?

You're getting quite a decent speakers, On-board sound is OK but sometimes you might get background noises by just moving the mouse. If you're on a budget, i suggest you should get at least an Audigy 2 Value or the XFi xtreme music. Trust me, it'll sound better than your onboard sound.

As for LCD, it will work ok for most games as it has quite a fast response time. You should read reviews like this http://www.epinions.com/content_184010444420 before purchasing.

As for your gfx, the X800 XL AiW doesn't really support SM 3.0. so unless if you dun mind sacrificing image quality, get at least a X1 series. X1800 XL AiW is not bad. or you could just get a 7900gt and another separate TV tuner. heh! 7900gt are highly overclockable.

Other than that, you'll have a highly overclockable PC

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Dell Dimension 8400
Pentium 4 3.4GHz 2M
925XE motherboard
1GB DDR2 RAM 533MHz
36GB WD Raptor
160GB Maxtor DiamondMax 9
X850XT PE 575MHz/630MHz
Sound Blaster Audigy 2

I know what it's like to be on a budget. ...but as the above post reads, you're opening up to some dissapointments with onboard sound. An SB Audigy SE will give you good sound for a long time ( http://www.newegg.com/Product/Product.asp?Item=N82E1682... )

or you could go with a venerable SB Live! 24Bit and still beat that onboard sound

( http://www.newegg.com/Product/Product.asp?Item=N82E1682... )

Remember, your soundcard is your preamp+DAC and while speakers are the most important part of the mix your soundcard is important too, it may be worth the cost of a few movies with your favorite lady (though she may not agree).