Im from the UK and Im not certain about the exchage rate so cant give you an exact set up. I strongly suggest you opt for a core 2 duo processor, they are the best price/performance CPU's on the market right now.
I would get 2x512 of PC6400 DDR2 (not much more expensive than PC5300 now anyway), you will probably want to upgrade this to 2gigs later on.
The hard drive and CD drive you can keep, but I strongly suggest you invest in a name brand PSU, it wont have to be something really powerfull just not some generic 400w POS.
Graphically Im think a radeon x1900GT of geforce 7900GS/GT.
The 3800+ X2 is £7 cheaper than the C2D over here in the UK, the motherboards for it start at about £75 for a 965p based one. If you are going to go for socket AM2 and DDR2 anyway then I dont see the problem?